<PAGE>
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, 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 333-43947
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
Symix Systems, Inc. 401(k) Plan
B. Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office:
Symix Systems, Inc.
2800 Corporate Exchange Drive
Suite 400
Columbus, Ohio 43231
Exhibit Index on Page 4.
Page 1 of 23 Pages.
<PAGE>
REQUIRED INFORMATION
The following financial statements and supplemental schedules
for the Symix Systems, Inc. 401(k) Plan are being filed herewith:
<TABLE>
<CAPTION>
Description Page No.
- ----------- --------
<S> <C>
Table of Contents to Financial Statements Page 6.
AUDITED FINANCIAL STATEMENTS:
Report of Independent Auditors Page 7.
Statements of Net Assets Available for Page 8.
Benefits at December 31, 1998 and 1997
Statements of Changes in Net Assets Available Page 9.
for Benefits for the Year Ended
December 31, 1998
Notes to Financial Statements
Pages 10
through 18.
SUPPLEMENTAL SCHEDULES:
Item 27a - Schedule of Assets Held for Investment Page 20.
Purposes as of December 31, 1998
Item 27d - Schedule of Reportable Transactions Pages 21
for the Year Ended December 31, 1998 and 22.
</TABLE>
The following exhibit is being filed herewith:
<TABLE>
<CAPTION>
Exhibit No. Description Page No.
- ----------- ----------- ---------
<S> <C> <C>
23 Consent of Independent Auditors Page 23.
</TABLE>
Page 2 of 23 Pages.
<PAGE>
SIGNATURES
----------
THE PLAN. Pursuant to the requirements of the Securities
Exchange Act of 1934, the trustee has duly caused this annual report to be
signed on its behalf by the undersigned hereunto duly authorized.
SYMIX SYSTEMS, INC. 401(K) STOCK PLAN
Date: June 28, 1999 By:
-----------------------------------
Lawrence W. DeLeon, Plan Trustee
Page 3 of 23 Pages.
<PAGE>
SYMIX SYSTEMS, INC. 401(K) PLAN
ANNUAL REPORT ON FORM 11-K
FOR FISCAL YEAR ENDED DECEMBER 31, 1998
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Description Page No.
- ----------- ----------- --------
<S> <C> <C>
23 Consent of Independent Auditors Page 23.
</TABLE>
Page 4 of 23 Pages.
<PAGE>
AUDITED FINANCIAL STATEMENTS AND SCHEDULES
SYMIX 401(k) PROFIT SHARING PLAN
DECEMBER 31, 1998 AND 1997 AND YEAR ENDED DECEMBER 31, 1998 WITH
REPORT OF INDEPENDENT AUDITORS
Page 5 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Audited Financial Statements and Schedules
December 31, 1998 and 1997 and year ended December 31, 1998
TABLE OF CONTENTS
<TABLE>
<S> <C>
Report of Independent Auditors ..............................................7
Financial Statements
Statements of Net Assets Available for Benefits..............................8
Statement of Changes in Net Assets Available for Benefits....................9
Notes to Financial Statements ..............................................10
Schedules
Schedule of Assets Held for Investment Purposes.............................20
Schedule of Reportable Transactions.........................................21
</TABLE>
Page 6 of 23 Pages.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Board of Trustees
Symix 401(k) Profit Sharing Plan
We have audited the accompanying statements of net assets available for benefits
of Symix 401(k) Profit Sharing Plan as of December 31, 1998 and 1997, and the
related statement of changes in net assets available for benefits for the year
ended December 31, 1998. 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 benefits of the Plan at
December 31, 1998 and 1997, and the changes in its net assets available for
benefits for the year ended December 31, 1998, in conformity with generally
accepted accounting principles.
The information provided by Nationwide Life Insurance Company or The New England
and presented in the "Schedule of Reportable Transactions" does not disclose the
historical cost of investments. Disclosure of this information is required by
the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998, and reportable
transactions for the year then ended, are presented for purposes of additional
analysis and are not a required part of the 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. These supplemental schedules are the responsibility of the
Plan's management. The supplemental schedules have been subjected to the
auditing procedures applied in our audits of the financial statements and, in
our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
April 4, 1999, except for Note 6, as to which
the date is June 25, 1999
Page 7 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Statements of Net Assets Available for Benefits
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
----------------------------------
<S> <C> <C>
ASSETS
Cash $ - $ 21,835
Investments, at fair value:
Symix Systems, Inc. common stock 2,359,372 1,583,108
Common/Collective Trust funds 628,327 -
Mutual funds 8,408,243 -
Participant loans 179,549 76,960
Individual variable annuity contracts - 5,828,315
----------------------------------
Total investments 11,575,491 7,510,218
Receivables:
Contribution from Symix Systems, Inc. 18,609 25,125
Contributions from employees 55,826 80,615
----------------------------------
Total receivables 74,435 105,740
----------------------------------
Net assets available for benefits $ 11,649,926 $ 7,615,958
----------------------------------
----------------------------------
</TABLE>
SEE ACCOMPANYING NOTES.
Page 8 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 1998
<TABLE>
<S> <C>
ADDITIONS
Employee contributions $ 2,006,557
Employer contributions 608,976
Rollover contributions 337,487
Investment income, net 1,650,455
----------------
4,603,475
DEDUCTIONS
Benefit payments 450,258
Loan repayments/transfers 10,574
----------------
460,832
Net unrealized/realized depreciation
in fair value of investments (108,675)
----------------
Net increases 4,033,968
Net assets available for benefits at beginning of year 7,615,958
----------------
Net assets available for benefits at end of year $ 11,649,926
----------------
----------------
</TABLE>
SEE ACCOMPANYING NOTES.
Page 9 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Notes to Financial Statements
December 31, 1998
1. DESCRIPTION OF THE PLAN
The following description of the Symix Systems, Inc. 401(k) Profit Sharing Plan
(the Plan) provides only general information. Participants should refer to the
Summary Plan Description for a complete description of the Plan's provisions.
GENERAL
The Plan is a defined contribution plan covering substantially all employees
immediately upon hire, who have attained age 21. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
CONTRIBUTIONS
Each year, participants may contribute the lesser of 18% of their annual
compensation, as defined in the Plan, or the maximum permitted by the Internal
Revenue Code. The Company contributes an amount equal to 50% of a participant's
elective deferred contribution, on the first 5% of a participant's compensation.
Upon enrollment, a participant may direct employee contributions in any of the
Plan's investment options. Effective January 1, 1998, these investment options
included Symix Systems, Inc. stock.
Effective July 1, 1998, the employer match contribution is allocated according
to participant elected investment options. Prior to this time, the employer
match contribution was accumulated in a cash management trust money market
series which was in turn used to purchase the Company's stock as an investment
of the Plan (see Note 6).
PARTICIPANTS ACCOUNTS
Each participant's account is credited with the participant's contributions and
allocations of (a) the Company's contributions and (b) Plan earnings. Earnings
of the Plan are allocated to individual participant's accounts based on the
ratio of the participant's account balance in the appropriate fund as of the
preceding valuation date to the total fund balance as of the preceding valuation
date.
Upon termination of employment, a participant's nonvested portion of Company
contributions and related earnings are forfeited. These amounts are used to
reduce future Company contributions. The benefit to which a participant is
entitled is the benefit that can be provided from the participant's account.
Page 10 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
VESTING
Amounts contributed by participants and earnings thereon become immediately
vested. Vesting of the employer's contribution and related earnings becomes 100%
vested after five years of continuous service (20% per year of service with the
Company).
PARTICIPANT LOANS
Under the Plan, employees may borrow from their fund accounts up to the lesser
of $50,000 or 50% of their vested account balance. Loan terms range from 1-5
years or up to 15 years for the purchase of a primary residence. The loans are
secured by the balance in the participant's account and bear interest at prime
plus one percent. Principal and interest is paid ratably through monthly payroll
deductions.
PAYMENT OF BENEFITS
On termination of service, a participant may receive a lump-sum amount equal to
the vested value of his or her account, or upon death, disability or retirement,
elect to receive annual installments.
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 the Employee Retirement Income Security Act of
1974 (ERISA). In the event of plan termination, participants will become 100%
vested in their accounts.
2. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared on the accrual basis of
accounting.
INVESTMENTS
The Plan's investments are stated at fair value. The shares of registered
investment companies are valued at quoted market prices which represent the net
asset values of shares held by the Plan at year-end. The participant loans are
valued at their outstanding balances, which approximate fair value.
Page 11 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investment contracts held in the General Account, as of December 31, 1997, are
recorded at their contract values, which represent contributions and reinvested
income, less any withdrawals plus accrued interest, because these investments
have fully benefit-responsive features. The fair value of the investment
contracts held by the General Account at December 31, 1998 and 1997 was $0 and
$229,170, respectively. The average yield of the Interest Income Fund was
approximately 4.95% in 1997. The crediting interest rate for these investment
contracts is reset annually by the issuer but cannot be less than zero and was
4.8% at December 31, 1997.
Purchases and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principals requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
ADMINISTRATIVE CHARGES
All costs and expenses of administering the Plan are borne by Symix Systems,
Inc. (the Company).
3. INVESTMENTS
The Plan's investments are held by Merrill Lynch as of December 31, 1998 and
were held by Nationwide Life Insurance Company and The New England at December
31, 1997. Investments that represent 5 percent or more of the Plan's net assets
are separately identified.
The Plan's investments, including investments bought and sold as well as held
during the year, depreciated in fair value during the year ended December 31,
1998 by $108,675.
Page 12 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
3. INVESTMENTS (CONTINUED)
Statements of net assets available for benefits with fund information at
December 31, 1998 and 1997 are as follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1998
--------------------------------------------------------------------------------------------
MERRILL LYNCH MERRILL LYNCH MFS
RETIREMENT CORPORATE BOND FUND, MERRILL LYNCH MASSACHUSETTS DAVIS NEW
PRESERVATION INC. INVESTMENT CAPITAL INVESTORS YORK VENTURE
TOTAL TRUST GRADE PORTFOLIO FUND, INC. TRUST FUND, INC.
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
Symix Systems, Inc. common stock $ 2,359,372 $ - $ - $ - $ - $ -
Common/Collective Trust funds 628,327 628,327 - - - -
Mutual funds 8,408,243 - 181,638 1,288,872 2,663,116 64,237
Participant loans 179,549 - - - - -
--------------------------------------------------------------------------------------------
11,575,491 628,327 181,638 1,288,872 2,663,116 64,237
Receivables:
Participant's contribution 55,826 3,078 890 6,313 13,046 315
Employer's contribution 18,609 1,026 297 2,105 4,348 105
--------------------------------------------------------------------------------------------
74,435 4,104 1,187 8,418 17,394 420
--------------------------------------------------------------------------------------------
Net assets available for benefits $ 11,649,926 $ 632,431 $ 182,825 $ 1,297,290 $ 2,680,510 $ 64,657
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
<CAPTION>
DECEMBER 31, 1997
--------------------------------------------------------------------------------------------
NATIONWIDE
NATIONWIDE MONEY DREYFUS A FIDELITY FIDELITY
GENERAL MARKET BONDS PLUS PURITAN MAGELLAN
TOTAL ACCOUNT FUND FUND FUND FUND
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
Cash equivalents $ 21,835 $ - $ - $ - $ - $ -
Individual variable annuity contracts 5,828,315 227,167 248,869 234,430 932,471 1,659,381
Symix Systems, Inc. common stock 1,583,108 - - - - -
Loans to participants 76,960 - - - - -
--------------------------------------------------------------------------------------------
7,510,218 227,167 248,869 234,430 932,471 1,659,381
Receivables:
Participant's contribution 80,615 2,003 2,536 2,779 13,531 20,101
Employer's contribution 25,125 - - - - -
--------------------------------------------------------------------------------------------
105,740 2,003 2,536 2,779 13,531 20,101
--------------------------------------------------------------------------------------------
Net assets available for benefits $ 7,615,958 $ 229,170 $ 251,405 $ 237,209 $ 946,002 $ 1,679,482
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
</TABLE>
Page 13 of 23 Pages.
<PAGE>
<TABLE>
<CAPTION>
DECEMBER 31, 1998 (CONTINUED)
-------------------------------------------------------------------------------------------
MFS MERRILL LYNCH
GAM FUNDAMENTAL MERRILL LYNCH MERRILL LYNCH SYMIX SYSTEMS,
INTERNATIONAL GROWTH GROWTH S&P 500 PARTICIPANT INC. COMPANY
FUND FUND, INC. FUND INDEX FUND LOANS STOCK
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
Symix Systems, Inc. common stock $ - $ - $ - $ - $ - $ 2,359,372
Common/Collective Trust funds - - - - - -
Mutual funds 675,240 2,643,228 825,191 66,721 - -
Participant loans - - - - 179,549 -
-------------------------------------------------------------------------------------------
675,240 2,643,228 825,191 66,721 179,549 2,359,372
Receivables:
Participant's contribution 3,307 12,949 4,043 327 - 11,558
Employer's contribution 1,103 4,316 1,347 109 - 3,853
-------------------------------------------------------------------------------------------
Net assets available for benefits 4,410 17,265 5,390 436 - 15,411
-------------------------------------------------------------------------------------------
$ 679,650 $ 2,660,493 $ 830,581 $ 67,157 $ 179,549 $ 2,374,783
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
<CAPTION>
DECEMBER 31, 1997 (CONTINUED)
---------------------------------------------------------------------------
TWENTIETH
STRONG CENTURY ULTRA TEMPLETON EMPLOYER
SPECIAL INVESTORS FOREIGN PARTICIPANT MATCH
FUND II FUND FUND LOANS ACCOUNT
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments:
Cash equivalents $ - $ - $ - $ - $ 21,835
Individual variable annuity contracts 615,484 1,445,121 465,392 - -
Symix Systems, Inc. common stock - - - - 1,583,108
Loans to participants - - - 76,960 -
---------------------------------------------------------------------------
615,484 1,445,121 465,392 76,960 1,604,943
Receivables:
Participant's contribution 7,487 22,703 9,475 - -
Employer's contribution - - - - 25,125
---------------------------------------------------------------------------
Net assets available for benefits 7,487 22,703 9,475 - 25,125
---------------------------------------------------------------------------
$ 622,971 $ 1,467,824 $ 474,867 $ 76,960 $ 1,630,068
---------------------------------------------------------------------------
---------------------------------------------------------------------------
</TABLE>
Page 14 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
3. INVESTMENTS (CONTINUED)
Statement of changes in net assets available for benefits with fund information
for the year ended December 31, 1998 is as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1998
-------------------------------------------------------------------------------
NATIONWIDE
NATIONWIDE MONEY DREYFUS A FIDELITY
GENERAL MARKET BONDS PLUS PURITAN
TOTAL ACCOUNT FUND FUND FUND
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ADDITIONS
Employee contributions $ 2,006,557 $ 26,778 $ 21,031 $ 23,441 $ 134,916
Employer contributions 608,976 - - - -
Rollover contributions 337,487 30 437 1,112 27,713
Investment income, net 1,650,455 3,865 2,908 5,789 91,147
-------------------------------------------------------------------------------
4,603,475 30,673 24,376 30,342 253,776
DEDUCTIONS
Benefit payments (450,258) (3,349) (9,318) (1,746) (30,381)
Loans - (3,905) (3,580) (4,755) (20,275)
Loan repayments/transfers (10,574) 559 449 682 4,015
Transfers between funds - (253,148) (263,332) (261,732) (1,153,137)
Net unrealized/realized appreciation in
fair value of investments (108,675) - - - -
-------------------------------------------------------------------------------
Net increase 4,033,968 (229,170) (251,405) (237,209) (946,002)
Net assets available for benefits
at beginning of year 7,615,958 229,170 251,405 237,209 946,002
-------------------------------------------------------------------------------
Net assets available for benefits
at end of year $ 11,649,926 $ - $ - $ - $ -
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------
TWENTIETH
FIDELITY STRONG CENTURY ULTRA TEMPLETON
MAGELLAN SPECIAL INVESTORS FOREIGN
FUND FUND II FUND FUND
------------------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS
Employee contributions $ 220,840 $ 113,068 $ 264,804 $ 78,950
Employer contributions - - - -
Rollover contributions 56,157 18,763 43,953 13,163
Investment income, net 279,840 76,917 348,314 (320)
------------------------------------------------------------
556,837 208,748 657,071 91,793
DEDUCTIONS
Benefit payments (28,726) (25,829) (37,706) (21,333)
Loans (72,460) (3,205) (24,820) (2,450)
Loan repayments/transfers 4,781 5,810 7,991 856
Transfers between funds (2,139,914) (808,495) (2,070,361) (543,734)
Net unrealized/realized appreciation in
fair value of investments - - - -
------------------------------------------------------------
Net increase (1,679,482) (622,971) (1,467,825) (474,868)
Net assets available for benefits
at beginning of year 1,679,482 622,971 1,467,824 474,867
------------------------------------------------------------
Net assets available for benefits
at end of year $ - $ - $ - $ -
------------------------------------------------------------
------------------------------------------------------------
</TABLE>
Page 15 of 23 Pages.
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1998 (CONTINUED)
-----------------------------------------------------------------------------------------
MERRILL LYNCH MERRILL LYNCH
RETIREMENT CORPORATE BOND FUND, DAVIS NEW
PRESERVATION INC.-INVESTMENT MERRILL LYNCH MFS MASSACHUSETTS YORK VENTURE
TRUST GRADE PORTFOLIO CAPITAL FUND, INC. INVESTORS TRUST FUND, INC.
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ADDITIONS $ 61,888 $ 28,176 $ 152,453 $ 285,018 $ 4,197
Employee contributions 22,923 9,452 48,997 90,861 1,047
Employer contributions 1,944 8,443 33,573 33,696 12,455
Rollover contributions 17,419 4,768 72,549 117,855 1,245
-----------------------------------------------------------------------------------------
Investment income, net 104,174 50,839 307,572 527,430 18,944
DEDUCTIONS
Benefit payments (13,238) (4,375) (37,384) (43,010) -
Loans (1,329) (160) (5,854) (2,903) -
Loan repayments/transfers 920 823 6,549 7,691 401
Transfers between funds 541,905 134,747 1,112,919 2,173,657 41,076
Net unrealized/realized appreciation in
fair value of investments - 950 (86,511) 17,645 4,236
-----------------------------------------------------------------------------------------
Net increase 632,432 182,824 1,297,291 2,680,510 64,657
Net assets available for benefits
at beginning of year - - - - -
-----------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $ 632,431 $ 182,825 $ 1,297,290 $ 2,680,510 $ 64,657
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------------------------------------
MERRILL LYNCH
MFS GAM FUNDAMENTAL MERRILL LYNCH SYMIX SYSTEMS,
INTERNATIONAL GROWTH MERILL LYNCH S&P 500 LOAN INC. COMPANY
FUND FUND, INC. GROWTH FUND INDEX FUND COLLATERAL STOCK
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Employee contributions $ 109,177 $ 302,570 $ 124,653 $ 4,212 $ - $ 50,385
Employer contributions 35,295 94,897 40,319 975 - 264,210
Rollover contributions 2,917 39,400 38,735 1,201 - 3,795
Investment income, net 9,659 87,024 16,376 2,321 4,455 508,324
------------------------------------------------------------------------------------------
157,048 523,891 220,083 8,709 4,455 826,714
DEDUCTIONS
Benefit payments (7,287) (97,887) (22,618) - - (66,071)
Loans (2,016) (9,134) (5,699) - 167,450 (4,905)
Loan repayments/transfers 2,369 9,844 6,291 390 (72,456) 1,461
Transfers between funds 597,812 2,036,968 789,565 56,301 3,140 5,763
Net unrealized/realized appreciation in
fair value of investments (68,276) 196,811 (157,040) 1,757 - (18,247)
------------------------------------------------------------------------------------------
Net increase 679,650 2,660,493 830,582 67,157 102,589 744,715
Net assets available for benefits
at beginning of year - - - - 76,960 1,630,068
------------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $ 679,650 $ 2,660,493 $ 830,582 $ 67,157 $ 179,549 $2,374,783
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
</TABLE>
Page 16 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
4. DIFFERENCE BETWEEN FINANCIAL STATEMENTS AND FORM 5500
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500 for the year ended December 31, 1998:
<TABLE>
<S> <C>
Benefits paid to participants per the financial statements $450,258
Add: Amounts allocated on Form 5500 to withdrawn
participants at December 31, 1998 -
Less: Amounts allocated on Form 5500 to withdrawn
participants at December 31, 1997 71,775
-------------------
Benefits paid to participants per the Form 5500 $378,483
-------------------
-------------------
</TABLE>
5. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue
Service dated October 30, 1996, stating that the Plan is qualified under
Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the
related trust is exempt from taxation. Once qualified, the Plan is required
to operate in conformity with the Code to maintain its qualification. The
Plan was amended and restated on July 1, 1998. The Plan Administrator
believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan is qualified
and the related trust is tax exempt.
Page 17 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
6. RELATED PARTY TRANSACTIONS
Included in the investments of the Plan are marketable securities consisting of
Symix Systems, Inc.'s common stock. Stock purchased during 1997 included 15,330
shares at a cost of $219,299. at December 31, 1998, the Plan has 112,326 shares
with a market value of $2,358,854.($21.00 per share). At June 24, 1999, the
closing market price of Symix Systems, Inc.'s common stock was $10.63 per share.
7. YEAR 2000 (UNAUDITED)
The Plan Sponsor has determined that it will be necessary to take certain steps
in order to ensure that the Plan's information systems are prepared to handle
year 2000 dates. The Plan Sponsor is taking a two phase approach. The first
phase addresses internal and external resources being utilized to replace or
modify existing software applications, and test the software and equipment for
the year 2000 modifications. The Plan Sponsor anticipates substantially
completing this phase of the project by July 1999. Costs associated with
modifying software and equipment are not estimated to be significant and will be
paid by the Plan Sponsor.
For the second phase of the project, Plan management established formal
communications with its third party service providers to determine that they
have developed plans to address their own year 2000 problems as they relate to
the Plan's operations. All third party service providers have indicated that
they will be year 2000 compliant by early 1999. If modification of data
processing systems of either the Plan, the Plan Sponsor, or its service
providers are not completed timely, the year 2000 problem could have a material
impact on the operations of the Plan. Plan management has not developed a
contingency plan, because they are confident that all systems will be year 2000
ready.
Page 18 of 23 Pages.
<PAGE>
SUPPLEMENTAL
SCHEDULES
Page 19 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Employer ID #31-1083175
Plan #001
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF CURRENT
OR SIMILAR PARTY INVESTMENT COST VALUE
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MERRILL LYNCH
Common/Collective Trust Funds
Merrill Lynch Retirement 628,327 units $ 628,327 628,327
Preservation Trust
Mutual Funds
Merrill Lynch Corporate Bond
Fund, Inc. Investment Grade Portfolio 15,565 units 180,720 181,638
Merrill Lynch Capital Fund, Inc. 37,511 units 1,370,542 1,288,872
MFS Massachusetts Investors Trust 131,512 units 2,642,652 2,663,116
Davis New York Venture Fund, Inc. 2,568 units 60,039 64,237
MFS GAM International Fund 22,523 units 739,705 675,240
Merrill Lynch Fundamental Growth
Fund, Inc. 128,938 units 2,443,398 2,643,228
Merrill Lynch Growth Fund 38,453 units 969,052 825,191
Merrill Lynch S&P 500 Index Fund 4,361 units 64,964 66,721
------------------------------------
8,471,072 8,408,243
Symix Systems, Inc.
common stock 112,326 shares 2,315,037 2,359,372
Participant loans Interest rates ranging
from 7% to 11% - 179,549
------------------------------------
$ 11,414,436 $ 11,575,491
------------------------------------
------------------------------------
</TABLE>
Page 20 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Employer ID #31-1083175
Plan #001
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET ON NET
DESCRIPTION OF PURCHASE SELLING COST OF TRANSACTION GAIN/
IDENTITY OF PARTY INVOLVED ASSET PRICE PRICE ASSET DATE LOSS
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CATEGORY (i)--INDIVIDUAL TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS:
Nationwide Life Insurance Company Fidelity Magellan Fund - 1,582,166 (1) 1,582,166 (1)
Nationwide Life Insurance Company Fidelity Magellan Fund - 589,500 (1) 589,500 (1)
Nationwide Life Insurance Company Fidelity Puritan Fund - 796,575 (1) 796,575 (1)
Nationwide Life Insurance Company Strong Special Fund II - 658,865 (1) 658,865 (1)
Nationwide Life Insurance Company Twentieth Century Ultra Investors Fund - 1,790,817 (1) 1,790,817 (1)
Nationwide Life Insurance Company Templeton Foreign Fund - 381,233 (1) 381,233 (1)
CATEGORY (iii)--SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS:
Nationwide Life Insurance Company Fidelity Puritan Fund 179,823 - 179,823 179,823 -
Fidelity Puritan Fund - 1,186,198 (1) 1,186,198 (1)
Nationwide Life Insurance Company Twentieth Century Ultra Investors Fund 337,901 - 337,901 337,901 -
Twentieth Century Ultra Investors Fund - 2,159,751 (1) 2,159,751 (1)
Nationwide Life Insurance Company Strong Special Fund II 144,021 - 144,021 144,021 -
Strong Special Fund II - 845,300 (1) 845,300 (1)
Nationwide Life Insurance Company Templeton Foreign Fund 101,960 - 101,960 101,960 -
Templeton Foreign Fund - 622,431 (1) 622,431 (1)
</TABLE>
Page 21 of 23 Pages.
<PAGE>
Symix 401(k) Profit Sharing Plan
Employer ID #31-1083175
Plan #001
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET ON NET
DESCRIPTION OF PURCHASE SELLING COST OF TRANSACTION GAIN/
IDENTITY OF PARTY INVOLVED ASSET PRICE PRICE ASSET DATE LOSS
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CATEGORY (iii)--SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS
(CONTINUED):
Nationwide Life Insurance Company Fidelity Magellan Fund 300,948 - 300,948 300,948 -
Fidelity Magellan Fund - 2,274,461 (1) 2,274,461 (1)
Merrill Lynch Symix Systems, Inc., common stock 2,460,912 - 2,460,912 2,460,912 -
Symix Systems, Inc., common stock - 140,502 146,392 140,502 (5,890)
Merrill Lynch Retirement Preservation Trust 659,372 - 659,372 659,372 -
Retirement Preservation Trust - 31,045 31,045 31,045 -
Merrill Lynch Fundamental Growth Fund, Inc. 2,618,010 - 2,618,010 2,618,010 -
Fundamental Growth Fund, Inc. - 171,593 174,611 171,593 (3,018)
Merrill Lynch MFS GAM International Fund 765,181 - 765,181 765,181 -
MFS GAM International Fund - 21,665 25,476 21,665 (3,811)
Merrill Lynch Capital Fund, Inc. 1,434,351 - 1,434,351 1,434,351 -
Capital Fund, Inc. - 59,164 64,005 59,164 (4,841)
Merrill Lynch Growth Fund 1,046,231 - 1,046,231 1,046,231 -
Growth Fund - 64,011 77,191 64,011 (13,180)
Merrill Lynch MFS Massachusetts Investors Trust 2,707,055 - 2,707,055 2,707,055 -
MFS Massachusetts Investors Trust - 62,171 64,990 62,171 (2,819)
</TABLE>
There were no category (ii) or (iv) transactions or series of transactions in
excess of 5% of plan assets which occurred during the year ended December 31,
1998.
(1) Historical cost information is not maintained, therefore, the net gain
(loss) on sale of assets cannot be calculated.
Page 22 of 23 Pages.
<PAGE>
EXHIBIT 23
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 333-43947) pertaining to the Symix Systems, Inc. 401(K) Plan of our
report dated April 4, 1999, except for Note 6, as to which the date is June 25,
1999, with respect to the financial statements and schedules of the Symix
Systems, Inc. 401(K) Plan included in this Annual Report (Form 11-K) for the
year ended December 31, 1998.
Columbus, Ohio
June 25, 1999
------------------------------
Page 23 of 23 Pages.
