<PAGE> 1
This Exhibit Index is on page 3
As filed with the Securities and Exchange Commission on June 28, 1999
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, 1998.
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>
<CAPTION>
<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 23, 1999.
(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>
PAGE(s)
-------
FINANCIAL STATEMENTS
- --------------------
<S> <C>
Report of Independent Accountants............................................................................ 1
Statement of Net Assets Available for Benefits
with Fund Information as of December 31, 1998............................................................... 2-3
Statement of Net Assets Available for Benefits
with Fund Information as of December 31, 1997............................................................... 4-5
Statement of Changes in Net Assets Available for Benefits
with Fund Information for the Year Ended December 31, 1998.................................................. 6-7
Statement of Changes in Net Assets Available for Benefits
with Fund Information for the Year Ended December 31, 1997.................................................. 8-9
Notes to Financial Statements................................................................................ 10-15
ADDITIONAL INFORMATION*
- -----------------------
Schedule I - Schedule of Assets Held for Investment Purposes - December 31, 1998............................. 16
Schedule II - Schedule of Reportable Transactions - Year Ended December 31, 1998............................. 17
</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 23, 1999
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,
1998 and 1997, and its 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 conducted 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 fund information in the
statements of net assets available for benefits and the statements of changes in
net assets available for benefits is presented for purposes of additional
analysis rather than to present the net assets available for plan benefits and
changes in net assets available for benefits of each fund. These supplemental
schedules and fund information are the responsibility of the Plan's management.
The supplemental schedules and fund information 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.
By: s/ PricewaterhouseCoopers LLP
- 1 -
<PAGE> 5
MICROS SYSTEMS, INC.
401(K) RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------------------------------
MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH
CAPITAL READY ASSET PHOENIX BASIC VALUE
FUND TRUST FUND FUND
---- ----- ---- ----
ASSETS
<S> <C> <C> <C> <C>
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 MERRILL LYNCH PUTNAM NEW PUTNAM OTC &
FEDERAL SECURITIES GLOBAL ALLOCATION OPPORTUNITIES EMERGING GROWTH
TRUST FUND FUND FUND
----- ---- ---- ----
ASSETS
<S> <C> <C> <C> <C>
Uninvested cash
Investments
Mutual funds $ 1,674,101 $ 2,496,608
Equity securities
Participant notes
--------- --------- ------------- ---------------
Total investments 1,674,101 2,496,608
Receivables
Employer's contributions
Participants' contributions
--------- --------- ------------- ---------------
Total receivables
--------- --------- ------------- ---------------
Total assets 1,674,101 2,496,608
Liabilities
Net assets available for
benefits $ - $ - $ 1,674,101 $ 2,496,608
========= ========= ============= ===============
</TABLE>
<TABLE>
<CAPTION>
---------------------
AIM INTERNATIONAL
EQUITY
FUND
----
ASSETS
<S> <C>
Uninvested cash
Investments
Mutual funds $ 2,020,368
Equity securities
Participant notes
---------------
Total investments 2,020,368
Receivables
Employer's contributions
Participants' contributions
---------------
Total receivables
---------------
Total assets 2,020,368
Liabilities
Net assets available for
benefits $ 2,020,368
===============
</TABLE>
The accompanying notes are an integral part of these financial statments.
- 2 -
<PAGE> 6
MICROS SYSTEMS, INC.
401(K) RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
----------------------------------------------------------------------------------------------
PUTNAM AIM AIM PUTNAM
VOYAGER II VALUE CHARTER INCOME
FUND FUND FUND FUND
---- ---- ---- ----
ASSETS
<S> <C> <C> <C> <C>
Uninvested cash
Investments
Mutual funds $ 860,543 $ 2,816,265 $ 2,513,399 $ 688,900
Equity securities
Participant notes
------------ --------------- --------------- -------------
Total investments 860,543 2,816,265 2,513,399 688,900
Receivables
Employer's contributions
Participants' contributions
------------ --------------- --------------- -------------
Total receivables
------------ --------------- --------------- -------------
Total assets 860,543 2,816,265 2,513,399 688,900
Liabilities
Net assets available for
benefits $ 860,543 $ 2,816,265 $ 2,513,399 $ 688,900
============ =============== =============== =============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------
PUTNAM MICROS
MONEY MARKET COMMON STOCK PARTICIPANT UNINVESTED
FUND FUND NOTES CASH
---- ---- ----- ----
ASSETS
<S> <C> <C> <C> <C>
Uninvested cash $ 20,340 $ 3,960
Investments
Mutual funds $ 664,206
Equity securities 1,308,228
Participant notes $ 559,392
------------ --------------- ------------ -----------
Total investments 664,206 1,328,568 559,392 3,960
Receivables
Employer's contributions
Participants' contributions
------------ --------------- ------------ -----------
Total receivables
------------ --------------- ------------ -----------
Total assets 664,206 1,328,568 559,392 3,960
Liabilities
Net assets available for
benefits $ 664,206 $ 1,328,568 $ 559,392 $ 3,960
============ =============== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
TOTAL
-----
ASSETS
<S> <C>
Uninvested cash $ 24,300
Investments
Mutual funds 13,734,390
Equity securities 1,308,228
Participant notes 559,392
-----------------
Total investments 15,626,310
Receivables
Employer's contributions
Participants' contributions
-----------------
Total receivables
-----------------
Total assets 15,626,310
Liabilities
Net assets available for
benefits $ 15,626,310
=================
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
---------------------------------------------------------------------------------------
MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH
CAPITAL READY ASSET PHOENIX BASIC VALUE
FUND TRUST FUND FUND
---- ----- ---- ----
ASSETS
<S> <C> <C> <C> <C>
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 MERRILL LYNCH PUTNAM NEW PUTNAM OTC &
FEDERAL SECURITIES GLOBAL ALLOCATION OPPORTUNITIES EMERGING GROWTH
TRUST FUND FUND FUND
----- ---- ---- ----
ASSETS
<S> <C> <C> <C> <C>
Uninvested cash
Investments
Mutual funds $ 959,136 $ 2,108,532
Equity securities
Participant notes
---------- --------- ------------- ---------------
Total investments 959,136 2,108,532
Receivables
Employer's contributions
Participants' contributions
---------- --------- ------------- ---------------
Total receivables
---------- --------- ------------- ---------------
Total assets 959,136 2,108,532
Liabilities
Net assets available for
benefits $ - $ - $ 959,136 $ 2,108,532
========= ========= ============= ===============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
------------------------
AIM INTERNATIONAL
EQUITY
FUND
----
ASSETS
<S> <C>
Uninvested cash
Investments
Mutual funds $ 1,577,775
Equity securities
Participant notes
---------------
Total investments 1,577,775
Receivables
Employer's contributions
Participants' contributions
---------------
Total receivables
---------------
Total assets 1,577,775
Liabilities
Net assets available for
benefits $ 1,577,775
===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 4 -
<PAGE> 8
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
VOYAGER II VALUE CHARTER INCOME
FUND FUND FUND FUND
---- ---- ---- ----
ASSETS
<S> <C> <C> <C> <C>
Uninvested cash
Investments
Mutual funds $ 407,464 $ 2,181,055 $ 2,000,686 $ 570,945
Equity securities
Participant notes
------------ --------------- --------------- -------------
Total investments 407,464 2,181,055 2,000,686 570,945
Receivables
Employer's contributions
Participants' contributions
------------ --------------- --------------- -------------
Total receivables
------------ --------------- --------------- -------------
Total assets 407,464 2,181,055 2,000,686 570,945
Liabilities
------------ --------------- --------------- -------------
Net assets available for
benefits $ 407,464 $ 2,181,055 $ 2,000,686 $ 570,945
============ =============== =============== =============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------
PUTNAM MICROS
MONEY MARKET COMMON STOCK PARTICIPANT UNINVESTED
FUND FUND NOTES CASH
---- ---- ----- ----
ASSETS
<S> <C> <C> <C> <C>
Uninvested cash $ 10,227 $ 17,276
Investments
Mutual funds $ 548,689
Equity securities 587,655
Participant notes $ 493,600
------------ ------------ ------------ -----------
Total investments 548,689 597,882 493,600 17,276
Receivables
Employer's contributions
Participants' contributions
------------ ------------ ------------ -----------
Total receivables
------------ ------------ ------------ -----------
Total assets 548,689 597,882 493,600 17,276
Liabilities
------------ ------------ ------------ -----------
Net assets available for
benefits $ 548,689 $ 597,882 $ 493,600 $ 17,276
============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
TOTAL
-----
ASSETS
<S> <C>
Uninvested cash $ 27,503
Investments
Mutual funds 10,354,282
Equity securities 587,655
Participant notes 493,600
---------------
Total investments 11,463,040
Receivables
Employer's contributions
Participants' contributions
---------------
Total receivables
---------------
Total assets 11,463,040
Liabilities
---------------
Net assets available for
benefits $ 11,463,040
===============
</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, 1998
- --------------------------------------------------------------------------------
<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
Net appreciation
(depreciation) in fair
value of investments
--------------- ------------- --------------- ---------------
--------------- ------------- --------------- ---------------
Contributions
Employer's
Participants'
--------------- ------------- --------------- ---------------
--------------- ------------- --------------- ---------------
Total additions
Deductions from net assets
attributed to:
Benefits paid to participants
--------------- ------------- --------------- ---------------
Net increase prior to
interfund transfers
Interfund transfers
--------------- ------------- --------------- ---------------
Net increase (decrease)
Net assets available for benefits
Beginning of year
--------------- ------------- --------------- ---------------
End of year $ - $ - $ - $ -
=============== ============= =============== ===============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------------------------------
MERRILL LYNCH MERRILL LYNCH PUTNAM NEW PUTNAM OTC &
FEDERAL SECURITIES GLOBAL ALLOCATION OPPORTUNITIES EMERGING GROWTH
TRUST FUND FUND FUND
----- ---- ---- ----
<S> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 50,900 $ 78,182
Net appreciation
(depreciation) in fair
value of investments 246,808 168,831
-------------- --------------- -------------- ---------------
297,708 247,013
-------------- --------------- -------------- ---------------
Contributions
Employer's 130,952 110,457
Participants' 548,158 438,346
-------------- --------------- -------------- ---------------
679,110 548,803
-------------- --------------- -------------- ---------------
Total additions 976,818 795,816
Deductions from net assets
attributed to:
Benefits paid to participants 152,834 243,841
-------------- --------------- -------------- ---------------
Net increase prior to
interfund transfers 823,984 551,975
Interfund transfers (109,019) (163,899)
-------------- --------------- -------------- ---------------
Net increase (decrease) 714,965 388,076
Net assets available for benefits
Beginning of year 959,136 2,108,532
-------------- --------------- -------------- ---------------
End of year $ - $ - $ 1,674,101 $ 2,496,608
============== =============== ============== ===============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
------------------------
AIM INTERNATIONAL
EQUITY
FUND
----
<S> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 33,538
Net appreciation
(depreciation) in fair
value of investments 179,775
---------------
213,313
---------------
Contributions
Employer's 81,815
Participants' 322,159
---------------
403,974
---------------
Total additions 617,287
Deductions from net assets
attribute to:
Benefits paid to participants 147,188
---------------
Net increase prior to
interfund transfers 470,099
Interfund transfers (27,506)
---------------
Net increase (decrease) 442,593
Net assets available for benefits
Beginning of year 1,577,775
---------------
End of year $ 2,020,368
===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 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, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------------------
PUTNAM AIM AIM PUTNAM
VOYAGER II VALUE CHARTER INCOME
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 29,686 $ 176,260 $ 106,085 $ 38,505
Net appreciation
(depreciation) in fair
value of investments 120,263 525,252 433,910 (16,459)
------------ --------------- --------------- ------------
149,949 701,512 539,995 22,046
------------ --------------- --------------- ------------
Contributions
Employer's 67,985 79,099 51,283 36,107
Participants' 266,447 333,053 205,348 139,184
------------ --------------- --------------- ------------
334,432 412,152 256,631 175,291
------------ --------------- --------------- ------------
Total additions 484,381 1,113,664 796,626 197,337
Deductions from net assets
attributed to:
Benefits paid to participants 77,071 302,433 191,204 104,402
------------ --------------- --------------- ------------
Net increase (decrease) prior to
interfund transfers 407,310 811,231 605,422 92,935
Interfund transfers 45,769 (176,021) (92,709) 25,020
------------ --------------- --------------- ------------
Net increase (decrease) 453,079 635,210 512,713 117,955
Net assets available for benefits
Beginning of year 407,464 2,181,055 2,000,686 570,945
------------ --------------- --------------- ------------
End of year $ 860,543 $ 2,816,265 $ 2,513,399 $ 688,900
============ =============== =============== ============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
------------------------------------------------
PUTNAM MICROS
MONEY MARKET COMMON STOCK PARTICIPANT
FUND FUND NOTES
---- ---- -----
<S> <C> <C> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 33,670 $ 754 $ 47,165
Net appreciation
(depreciation) in fair
value of investments 327,997
------------ --------------- ------------
33,670 328,751 47,165
------------ --------------- ------------
Contributions
Employer's (34,533) 58,159
Participants' 133,968 249,607
------------ --------------- ------------
99,435 307,766
------------ --------------- ------------
Total additions 133,105 636,517 47,165
Deductions from net assets
attributed to:
Benefits paid to participants 282,777 103,927 29,769
------------ --------------- ------------
Net increase (decrease) prior to
interfund transfers (149,672) 532,590 17,396
Interfund transfers 265,189 198,096 48,396
------------ --------------- ------------
Net increase (decrease) 115,517 730,686 65,792
Net assets available for benefits
Beginning of year 548,689 597,882 493,600
------------ --------------- ------------
End of year $ 664,206 $ 1,328,568 $ 559,392
============ =============== ============
</TABLE>
<TABLE>
<CAPTION>
UNINVESTED
CASH TOTAL
---- -----
<S> <C> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 594,745
Net appreciation
(depreciation) in fair
value of investments 1,986,377
----------- ---------------
2,581,122
----------- ---------------
Contributions
Employer's 581,324
Participants' 2,636,270
----------- ---------------
3,217,594
----------- ---------------
Total additions 5,798,716
Deductions from net assets
attributed to:
Benefits paid to participants 1,635,446
----------- ---------------
Net increase (decrease) prior to
interfund transfers 4,163,270
Interfund transfers $ (13,316)
----------- ---------------
Net increase (decrease) (13,316) 4,163,270
Net assets available for benefits
Beginning of year 17,276 11,463,040
----------- ---------------
End of year $ 3,960 $ 15,626,310
=========== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 7 -
<PAGE> 11
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
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 $ 3,471
Net appreciation
(depreciation) in fair
value of investments $ 8,743 31,986 $ 9,478 $ 46,563
--------------- ------------- --------------- ---------------
8,743 35,457 9,478 46,563
--------------- ------------- --------------- ---------------
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
Deductions from net assets
attributed to:
Benefits paid to participants
--------------- ------------- --------------- ---------------
Net increase prior to
interfund transfers 18,867 69,010 47,633 76,828
Interfund transfers (1,697,550) (547,330) (1,768,092) (1,683,231)
--------------- ------------- --------------- ---------------
Net increase (decrease) (1,678,683) (478,320) (1,720,459) (1,606,403)
Net assets available for benefits
Beginning of year 1,678,683 478,320 1,720,459 1,606,403
--------------- ------------- --------------- ---------------
End of year $ - $ - $ - $ -
=============== ============= =============== ===============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------------------------------
MERRILL LYNCH MERRILL LYNCH PUTNAM NEW PUTNAM OTC &
FEDERAL SECURITIES GLOBAL ALLOCATION OPPORTUNITIES EMERGING GROWTH
TRUST FUND FUND FUND
----- ---- ---- ----
<S> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 19,968
Net appreciation
(depreciation) in fair
value of investments $ 393 $ 15,275 90,866 $ 189,231
-------------- --------------- -------------- ---------------
393 15,275 110,834 189,231
-------------- --------------- -------------- ---------------
Contributions
Employer's 118,460 109,566
Participants' 13,142 535,264 481,552
-------------- --------------- -------------- ---------------
13,142 653,724 591,118
-------------- --------------- -------------- ---------------
Total additions 393 28,417 764,558 780,349
Deductions from net assets
attributed to:
Benefits paid to participants 26,153 272,255
-------------- --------------- -------------- ---------------
Net increase prior to
interfund transfers 393 28,417 738,405 508,094
Interfund transfers (350,856) (1,349,921) 220,731 1,600,438
-------------- --------------- -------------- ---------------
Net increase (decrease) (350,463) (1,321,504) 959,136 2,108,532
Net assets available for benefits
Beginning of year 350,463 1,321,504
-------------- --------------- -------------- ---------------
End of year $ - $ - $ 959,136 $ 2,108,532
============== =============== ============== ===============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
------------------------
AIM INTERNATIONAL
EQUITY
FUND
----
<S> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 5,836
Net appreciation
(depreciation) in fair
value of investments 88,167
---------------
94,003
---------------
Contributions
Employer's 73,382
Participants' 324,546
---------------
397,928
---------------
Total additions 491,931
Deductions from net assets
attributed to:
Benefits paid to participants 185,233
---------------
Net increase prior to
interfund transfers 306,698
Interfund transfers 1,271,077
---------------
Net increase (decrease) 1,577,775
Net assets available for benefits
Beginning of year
---------------
End of year $ 1,577,775
===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 8 -
<PAGE> 12
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
VOYAGER II VALUE CHARTER INCOME
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 645 $ 219,458 $ 212,766 $ 28,141
Net appreciation
(depreciation) in fair
value of investments 48,816 141,298 97,132 6,069
------------ --------------- --------------- ------------
49,461 360,756 309,898 34,210
------------ --------------- --------------- ------------
Contributions
Employer's 58,567 56,165 40,314 27,446
Participants' 247,612 266,577 200,375 195,952
------------ --------------- --------------- ------------
306,179 322,742 240,689 223,398
------------ --------------- --------------- ------------
Total additions 355,640 683,498 550,587 257,608
Deductions from net assets
attributed to:
Benefits paid to participants 20,560 169,551 174,317 36,849
------------ --------------- --------------- ------------
Net increase (decrease) prior to
interfund transfers 335,080 513,947 376,270 220,759
Interfund transfers 72,384 1,667,108 1,624,416 350,186
------------ --------------- --------------- ------------
Net increase (decrease) 407,464 2,181,055 2,000,686 570,945
Net assets available for benefits
Beginning of year
------------ --------------- --------------- ------------
End of year $ 407,464 $ 2,181,055 $ 2,000,686 $ 570,945
============ =============== =============== ============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
----------------------------------------------
PUTNAM MICROS
MONEY MARKET COMMON STOCK PARTICIPANT UNINVESTED
FUND FUND NOTES CASH
---- ---- ----- ----
<S> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 27,337 $ 613 $ 34,491
Net appreciation
(depreciation) in fair
value of investments 188,700
------------ ------------ ------------ -----------
27,337 189,313 34,491
------------ ------------ ------------ -----------
Contributions
Employer's (89,782) 37,959
Participants' 103,696 185,538
------------ ------------ ------------ -----------
13,914 223,497
------------ ------------ ------------ -----------
Total additions 41,251 412,810 34,491
Deductions from net assets
attributed to:
Benefits paid to participants 97,820 12,126 699
------------ ------------ ------------ -----------
Net increase (decrease) prior to
interfund transfers (56,569) 400,684 33,792
Interfund transfers 605,258 (110,738) 78,844 $ 17,276
------------ ------------ ------------ -----------
Net increase (decrease) 548,689 289,946 112,636 17,276
Net assets available for benefits
Beginning of year 307,936 380,964
------------ ------------ ------------ -----------
End of year $ 548,689 $ 597,882 $ 493,600 $ 17,276
============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
TOTAL
-----
<S> <C>
Additions to net assets
attributed to:
Investment income
Interest and dividends $ 552,726
Net appreciation
(depreciation) in fair
value of investments 962,717
---------------
1,515,443
---------------
Contributions
Employer's 432,077
Participants' 2,666,351
---------------
3,098,428
---------------
Total additions 4,613,871
Deductions from net assets
attributed to:
Benefits paid to participants 995,563
---------------
Net increase (decrease) prior to
interfund transfers 3,618,308
Interfund transfers
---------------
Net increase (decrease) 3,618,308
Net assets available for benefits
Beginning of year 7,844,732
---------------
End of year $ 11,463,040
===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 9 -
<PAGE> 13
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
($10,000 and $9,500 per taxpayer for the 1998 and 1997 calendar years,
respectively). 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 discretionary 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. Participants
immediately vest upon death or disability.
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.
E. FORFEITED ACCOUNTS
In 1998 and 1997, employer contributions were reduced by $59,733 and $115,394,
respectively, from forfeited nonvested accounts. These amounts were applied
against employer contributions to the Putnam
- 10 -
<PAGE> 14
MICROS SYSTEMS, INC.
401(K) RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Money Market Fund in the respective year.
F. INVESTMENT OPTIONS
At January 1, 1997, participants had the following investment options:
MERRILL LYNCH CAPITAL FUND. This fund is a Merrill Lynch sponsored
mutual fund whose investment objective is to achieve the highest total
investment return consistent with prudent risk. Fund management may
shift emphasis among equity, debt or convertible securities.
MERRILL LYNCH READY ASSET TRUST. This fund's objective is to maintain
a value of one dollar. Purchases are principally made in investments
that have a short-term maturity.
MERRILL LYNCH PHOENIX FUND. This fund is designed for investors
seeking long-term growth of capital through a diversified portfolio of
equity and fixed-income securities that fund management believes are
undervalued.
MERRILL LYNCH FEDERAL SECURITIES TRUST. This fund seeks to achieve
high current return by investing in securities issued or guaranteed by
the U.S. government or U.S. government agencies and enterprises.
MERRILL LYNCH BASIC VALUE FUND. This fund strives for capital
appreciation, then income, by investing in securities, primarily
equities, that fund management believes are undervalued.
MERRILL LYNCH GLOBAL ALLOCATION FUND. This fund seeks to achieve the
highest investment return consistent with prudent risk through a fully
managed investment policy utilizing domestic and foreign equity, debt,
and money market instruments.
Effective January 29, 1997, the Plan discontinued the Merrill Lynch funds as
investment options. All monies invested in these funds were transferred into
mutual funds offered by AIM and Putnam on January 31, 1997. The transfer took
place as follows:
TRANSFERRED FROM: TRANSFERRED TO:
Merrill Lynch Basic Value Fund AIM Value Fund
Merrill Lynch Capital Fund AIM Charter Fund
Merrill Lynch Global Allocation Fund AIM International Growth Fund
Merrill Lynch Phoenix Fund Putnam OTC & Emerging Growth Fund
Merrill Lynch Federal Securities Trust Putnam Income Fund
Merrill Lynch Ready Asset Trust Putnam Money Market Fund
- 11 -
<PAGE> 15
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, 1998 and 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, 1998 and December 31, 1997, 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.
- 12 -
<PAGE> 16
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, 1998 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. Loans may extend past
five years if it is determined at the time of the loan that the funds will be
used to acquire the principal residence of the participant.
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.
- 13 -
<PAGE> 17
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 the Plan at year-end. The Company stock is valued at its
quoted market price. Participant notes receivable are valued at cost plus
accrued interest, 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.
F. RECLASSIFICATIONS
Certain prior year amounts in the accompanying financial statements have been
reclassified to conform to the current year presentation.
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.
- 14 -
<PAGE> 18
MICROS SYSTEMS, INC.
401(K) RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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.
- 15 -
<PAGE> 19
MICROS SYSTEMS, INC.
401(K) RETIREMENT PLAN
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
Schedule I - Schedule of Assets Held for Investment Purposes - December 31, 1998
<TABLE>
<CAPTION>
CURRENT
IDENTITY OF ISSUE DESCRIPTION OF INVESTMENT UNITS COST VALUE
- ----------------- ------------------------- ----- ---- -----
<S> <C> <C> <C> <C>
Putnam Investments:
New Opportunities Fund Class A shares, $58.43 per share 28,651.386 $ 1,389,954 $ 1,674,101
OTC & Emerging Growth Fund Class A shares, $17.25 per share 144,730.915 2,198,456 2,496,608
Voyager II Fund Class A shares, $22.70 per share 37,909.363 718,172 860,543
Income Fund Class A shares, $6.92 per share 99,552.088 699,912 688,900
Money Market Fund Class A shares, $1.00 per share 664,206.450 664,206 664,206
AIM Family of Funds:
International Equity Fund Class A shares, $18.61 per share 108,563.550 1,808,587 2,020,368
Value Fund Class A shares, $40.19 per share 70,073.784 2,260,983 2,816,265
Charter Fund Class A shares, $14.91 per share 168,571.333 2,057,427 2,513,399
MICROS Common Stock Common Stock $32.88 per share 39,794.000 949,300 1,308,228
------------------ ------------------
12,737,997 15,042,618
------------------ ------------------
Participant Notes (6.0% - 9.5%) 559,392
------------------ ------------------
$ 12,737,997 $ 15,602,010
================== ==================
</TABLE>
- 16 -
<PAGE> 20
SCHEDULE II - SCHEDULE OF REPORTABLE TRANSACTIONS - YEAR ENDED DECEMBER 31,
1998*
<TABLE>
<CAPTION>
PURCHASES SALES
--------- --------------------------------------
COST OF CURRENT GAIN/
IDENTITY OF ISSUE PURCHASES COST VALUE (LOSS)
- ----------------- --------- ---- ------- ------
<S> <C> <C> <C> <C>
Putnam New Opportunities Fund $828,087 $312,091 $359,931 $ 47,840
Putnam OTC & Emerging Growth Fund 720,742 464,008 501,497 37,489
Putnam Money Market Fund 788,055 672,537 672,537 -
AIM International Equity Fund 602,807 316,512 339,990 23,478
AIM Value Fund 663,314 488,889 553,356 64,467
MICROS Common Stock Fund 630,714 181,587 238,139 56,552
</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.
- 17 -
<PAGE> 21
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: June 28, 1999 By:
------------------------
Plan Sponsor
- 18 -
<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 Form S-8 (No. 333-07347) of MICROS Systems, Inc. of our report
dated June 23, 1999 relating to the financial statements of MICROS Systems, Inc.
401(k) Retirement Plan, which appears in this Form 11-K.
PricewaterhouseCoopers LLP
Baltimore, Maryland
June 23, 1999
- 19 -
