UNITED STATES
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 [FEE REQUIRED]
For the fiscal year ended: September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15[d] OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For transition period from __________ to ___________
Commission file number 0-20244
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
DATA RESEARCH ASSOCIATES, INC. 401[K] PROFIT SHARING PLAN
B. Name of the issuer of the securities held pursuant to the plan and
the address of its principal executive office:
DATA RESEARCH ASSOCIATES, INC.
1276 North Warson Rd.
St. Louis, Missouri 63132
REQUIRED INFORMATION
Financial Statements:
4. In lieu of requirements of Items 1-3, audited statements and
schedules prepared in accordance with the requirements of ERISA
for the plan's fiscal year ended September 30, 1997 are presented
on pages 3 through 18.
Exhibits: PAGE
1. Consent of Ernst & Young LLP, independent auditors 17
Financial Statements
and Supplemental Schedules
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Years ended September 30, 1997 and 1996
with Report of Independent Auditors
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Financial Statements
and Supplemental Schedules
Years ended September 30, 1997 and 1996
Contents
Report of Independent Auditors...............................................1
Financial Statements
Statement of Net Assets Available for Plan Benefits
With Fund Information -- 1997..............................................2
Statement of Net Assets Available for Plan Benefits
With Fund Information -- 1996..............................................4
Statement of Changes in Net Assets Available for Plan Benefits
With Fund Information -- 1997..............................................5
Statement of Changes in Net Assets Available for Plan Benefits
With Fund Information -- 1996..............................................7
Notes to Financial Statements................................................8
Supplemental Schedules
Line 27a- Schedule of Assets Held for Investment............................12
Line 27d- Schedule of Reportable Transactions...............................15
Report of Independent Auditors
Plan Administrator
Data Research Associates, Inc. 401(k) Profit Sharing Plan
We have audited the accompanying statements of net assets available for plan
benefits of Data Research Associates, Inc. 401(k) Profit Sharing Plan (the Plan)
as of September 30, 1997 and 1996, and the related statements of changes in net
assets available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan
at September 30, 1997 and 1996, and the changes in its net assets available
for plan benefits for the years then ended, in conformity with generally
accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of
assets held for investment purposes as of September 30, 1997, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974 and are
not a required part of the basic financial statements. The Fund Information
in the statements of net assets available for plan benefits and the statements
of changes in net assets available for plan 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 plan benefits of each fund.
The supplemental schedules and Fund Information have been subjected to the
auditing procedures applied in our 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.
December 2, 1997
Page 1
<TABLE>
<CAPTION>
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statement of Net Assets Available for Plan Benefits With Fund Information
September 30, 1997
Large Small
Guaranteed Capital Capital Basic
Income Balanced Growth Growth Value
Fund Fund Fund Fund Fund
------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments at fair value:
Money market funds $ 2,530 $ 31,683 $ 50,248 $ 12,182 $ 2,006
U.S. treasury bills and notes - 275,438 - - -
Mutual funds 286,067 - - 345,216 238,214
Common stocks - 748,960 1,157,944 - -
Participant notes receivable - - - - -
----------------------------------------------------
288,597 1,056,081 1,208,192 357,398 240,220
Receivables:
Employer's contribution 5,637 34,399 25,594 16,491 13,862
Participants' contribution 1,487 3,620 3,733 2,939 1,988
Interfund receivables/
payables 50 3,205 (960) (87) (10)
-----------------------------------------------------
7,174 41,224 28,367 19,343 15,840
-----------------------------------------------------
Net assets available for plan
benefits $295,771 $1,097,305 $1,236,559 $376,741 $256,060
=====================================================
See accompanying notes.
Page 2
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statement of Net Assets Available for Plan Benefits With Fund Information(Continued)
September 30, 1997
International
Equity DRA Stock Income
Fund Fund Fund Loans Total
----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments at fair value:
Money market funds $ 1,361 $ 499 $ 1,636 $ - $ 102,145
U.S. treasury bills and notes - - - - 275,438
Mutual funds 176,180 - 28,690 - 1,074,367
Common stocks - 55,290 - - 1,962,194
Participant notes receivable - - - 25,793 25,793
----------------------------------------------------------
177,541 55,789 30,326 25,793 3,439,937
Receivables:
Employer's contribution 7,640 6,105 1,316 - 111,044
Participants' contribution 1,342 749 268 46 16,172
Interfund receivables/
payables (23) 1,257 (3,386) (46) -
----------------------------------------------------------
8,959 8,111 (1,802) - 127,216
----------------------------------------------------------
Net assets available for plan
benefits $186,500 $63,900 $28,524 $25,793 $3,567,153
==========================================================
See accompanying notes.
Page 3
</TABLE>
<TABLE>
<CAPTION>
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statement of Net Assets Available for Plan Benefits With Fund Information
September 30, 1996
Large Small
Guaranteed Capital Capital Basic International
Income Balanced Growth Growth Value Equity DRA Stock
Fund Fund Fund Fund Fund Fund Fund Loans Total
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments at fair value:
Money market funds $ 3,392 $ 29,670 $ 45,067 $ 5,002 $ 3,163 $ 3,154 $ 2,544 $ - $ 91,992
U.S. treasury bills and notes - 131,510 - - - - - - 131,510
Corporate bonds - 51,698 - - - - - - 51,698
Mutual funds 244,661 - - 236,779 135,771 128,289 - - 745,500
Common stocks - 529,839 832,472 - - - 42,495 - 1,404,806
Participant notes receivable - - - - - - - 9,305 9,305
-----------------------------------------------------------------------------------------------
248,053 742,717 877,539 241,781 138,934 131,443 45,039 - 2,434,811
Receivables:
Employer's contribution 15,303 35,037 21,363 11,912 8,970 7,979 2,389 - 102,953
Participants' contribution 2,199 3,969 3,961 3,164 1,748 1,864 643 - 17,548
Interfund receivables/
payables 14,735 (793) (6,590) (4,871) (2,609) 128 - - -
-----------------------------------------------------------------------------------------------
32,237 38,213 18,734 10,205 8,109 9,971 3,032 - 120,501
-----------------------------------------------------------------------------------------------
Net assets available for plan
benefits $280,290 $780,930 $896,273 $251,986 $147,043 $141,414 $48,071 $9,305 $2,555,312
===============================================================================================
See accompanying notes.
Page 4
</TABLE>
<TABLE>
<CAPTION>
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statement of Changes in Net Assets Available for Plan Benefits With Fund Information
Year ended September 30, 1997
Large Small
Guaranteed Capital Capital Basic
Income Balanced Growth Growth Value
Fund Fund Fund Fund Fund
------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Investment Income $ 15,589 $ 26,247 $ 11,129 $ 24,353 $ 8,703
Net appreciation in
fair value of investments - 191,185 243,670 25,747 46,136
Contributions:
Participants 36,812 101,838 95,141 66,723 48,452
Employer 14,448 43,796 31,278 24,472 17,366
------------------------------------------------------
51,260 145,634 126,419 91,195 65,818
------------------------------------------------------
66,849 363,066 381,218 141,295 120,657
Deductions:
Benefits paid to participants 40,256 68,213 38,099 6,591 4,866
Interfund transfers (11,112) 21,522 (2,833) (9,949) (6,774)
------------------------------------------------------
Net increase in net
assets available for plan
participants 15,481 316,375 340,286 124,755 109,017
Net assets available for plan
benefits at beginning of year 280,290 780,930 896,273 251,986 147,043
------------------------------------------------------
Net assets available for plan
benefits at end of year $295,771 $1,097,305 $1,236,559 $376,741 $256,060
======================================================
See accompanying notes.
Page 5
</TABLE>
<TABLE>
<CAPTION>
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statement of Changes in Net Assets Available for Plan Benefits (Continued)
Year ended September 30, 1997
International
Equity DRA Stock Income
Fund Fund Fund Loans Total
---------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Investment Income $ 5,371 $ 496 $ 552 $1,318 $ 93,758
Net appreciation in fair 13,033 263 482 - 520,516
value of investments
Contributions:
Participants 36,666 26,118 7,895 - 419,645
Employer 10,630 7,740 1,166 - 150,896
---------------------------------------------------------
47,296 33,858 9,061 - 570,541
---------------------------------------------------------
65,700 34,617 10,095 1,318 1,184,815
Deductions:
Benefits paid to participants 6,116 2,366 - 6,467 172,974
Interfund transfers (14,498) (16,422) 18,429 21,637 -
---------------------------------------------------------
Net increase in net
assets available for plan
participants 45,086 15,829 28,524 16,488 1,011,841
Net assets available for plan
benefits at beginning of year 141,414 48,071 - 9,305 2,555,312
---------------------------------------------------------
Net assets available for plan
benefits at end of year $186,500 $63,900 $28,524 $25,793 $3,567,153
=========================================================
See accompanying notes.
Page 6
</TABLE>
<TABLE>
<CAPTION>
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statement of Changes in Net Assets Available for Plan Benefits With Fund Information
Year ended September 30, 1996
Large Small
Guaranteed Capital Capital Basic International
Income Balanced Growth Growth Value Equity DRA Stock
Fund Fund Fund Fund Fund Fund Fund Loans Total
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Investment Income $ 12,426 $ 21,463 $ 11,468 $ 323 $ 2,536 $ 205 $ 149 $ 615 $ 49,185
Net appreciation in fair
value of investments - 86,611 182,662 28,501 10,727 6,683 5,235 - 320,419
Contributions:
Participants 56 248 104,482 103,880 63,647 39,825 38,122 10,236 - 416,440
Employer 15,821 37,622 26,563 15,245 11,082 10,433 2,804 - 119,570
-----------------------------------------------------------------------------------------------
72,069 142,104 130,443 78,892 50,907 48,555 13,040 - 536,010
-----------------------------------------------------------------------------------------------
84,495 250,178 324,573 107,716 64,170 55,443 18,424 615 905,614
Deductions:
Benefits paid to participants 8,675 91,975 151,836 17,714 9,245 5,211 2,408 - 287,064
Interfund transfers 5,025 (17,406) (24,015) 18,095 (12,517) 12,210 18,204 404 -
-----------------------------------------------------------------------------------------------
Net increase in net
assets available for plan
participants 80,845 140,797 148,722 108,097 42,408 62,442 34,220 1,019 618,550
Net assets available for plan
benefits at beginning of year 199,445 640,133 747,551 143,889 104,635 78,972 13,851 8,286 1,936,762
-----------------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $280,290 $780,930 $896,273 $251,986 $147,043 $141,414 $48,071 $9,305 $2,555,312
===============================================================================================
See accompanying notes.
Page 7
</TABLE>
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements
September 30, 1996
1. DESCRIPTION OF THE PLAN
The following description of the Data Research Associates, Inc. 401(k) Profit
Sharing Plan (the Plan) provides only general information. Participants should
refer to the plan agreement for a more complete description of the Plan's
provisions.
GENERAL
The Plan is a defined contribution plan covering all domestic full-time
employees of Data Research Associates, Inc. ( the Company) who have one
month of service and are 21 years of age or older. The Plan is subject
to the provisions of the Employee Retirement Income Security Act of
1974 (ERISA).
Administrative fees for the Plan are paid by the Company.
CONTRIBUTIONS
Each year, participants may contribute up to 15 percent of pretax annual
compensation which is limited by the maximum amounts allowed under
Internal Revenue Service regulations. Participants may also contribute
amounts representing distributions from other qualified defined benefit or
defined contribution plans. The employer matching contributions equal 100
percent of each participant's elected contribution up to $1,500 and
discretionary Company profit sharing contributions. There were no
discretionary employer contributions during 1997 or 1996.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contribution
and allocations of the Company's matching contributions and plan earnings.
Allocations are based on participant account balances, as defined, Forfeited
balances of terminated participants' nonvested accounts are used to reduce
future Company contributions.
VESTING
Participants are immediately vested in their contributions plus actual
earnings thereon. Vesting in the Company contribution portion of their
accounts plus actual earnings thereon is based on years of continuous
service. A participant is 100 percent vested after five years of credited
service.
Page 8
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (continued)
INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct employer and employee
contributions in 10 percent increments in any of the following seven options:
- Guaranteed Income Fund -- Funds are invested in the Merrill Lynch
Retirement Preservation Trust. The Merrill Lynch Retirement
Preservation Trust invests in U.S. treasury notes and corporate bonds.
- Balanced Fund -- Funds are invested in common stocks, corporate bonds,
and U.S. treasury bills and notes selected by the fund manager at
Rittenhouse Capital Management.
- Large Capital Growth Fund -- Funds are invested in common stocks
selected by the fund managers at Roger Engemann & Associates, Inc.
Roger Engemann & Associates, Inc.'s managers select primarily U.S.
common stocks with market capitalization of $2 billion to $3 billion.
- Small Capital Growth Fund -- Funds are invested in Nicholas Applegate
Core Growth Fund. The fund invests primarily in mid-sized U.S. common
stocks.
- Basic Value Fund -- Funds are invested in Fidelity Advisor Growth
Opportunities Fund, which consists of growth, cyclical, and value U.S.
common stocks and lower-quality high-yielding bonds.
- International Equity Fund -- Funds are invested in Merrill Lynch
International Equity Fund, which consists of common stocks of
companies located in countries other than the U.S.
- Data Research Associates, Inc. (DRA) Stock Fund -- Funds are invested
in common stock of Data Research Associates, Inc.
- Income Fund - Funds are invested in Merrill Lynch Federal Securities
Trust. The fund invests primarily in U.S. Government and Government
agency securities, including Government National Mortgage Association
mortgage-backed certificates and other mortgage-backed government
securities.
Participants may change their investment options quarterly.
Page 9
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (Continued)
PARTICIPANT NOTES RECEIVABLE
Participants may borrow from their fund accounts up to a maximum of $50,000
or 50 percent of their vested account balance. Loan terms extend up to five
years or in excess of five years for the purchase of a primary residence.
The loans are secured by the balance in the participant's account and bear
interest at a reasonable rate determined by the administrator. Interest
rates range from 6 percent to 9 percent.
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, the participant may elect to receive annual installments
over a period not to exceed the participant's lifetime, or the joint
lifetime of the participant and the participant's spouse, or an
annuity contract.
2. SIGNIFICANT OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are presented on the accrual
basis of accounting.
INVESTMENT VALUATION AND INCOME RECOGNITION
Investment securities held in the Plan's funds are stated at fair market
value determined by Merrill Lynch from publicly quoted market prices.
Participant notes receivable are valued at cost, which approximates fair
market 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.
USE OF ESTIMATES
The preparation of the financial statements in conformity with generally
accepted accounting principles requires the plan administrator to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
Page 10
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
3. INVESTMENTS
The fair values of individual investments that represent 5 percent or more of
the Plan's net assets are as follows:
September 30
1997 1996
----------------------
Fidelity Advisor Growth Opportunities Fund $238,214 $135,771
Merrill Lynch Retirement Preservation Trust 286,067 244,661
Nicholas Applegate Core Growth Fund 345,216 236,779
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 plan
termination, participants will become 100 percent vested in their accounts.
5. TAX STATUS
The Plan has received a favorable determination letter from the Internal
Revenue Service ruling that it is a qualified plan pursuant to the
appropriate section of the Internal Revenue Code (IRC) and, accordingly, the
earnings of the underlying trust of the Plan are not subject to tax under
present income tax law. Once qualified, the Plan is required to operate
in conformity with the IRC to maintain its qualification. The Plan's
administrator believes that the Plan continues to qualify and to
operate as designed.
5. WITHDRAWN PARTICIPANTS
Amounts allocated to participants who have elected to withdraw from the Plan
but have not yet been paid were $26,975 and $10,634 at September 30, 1997
and 1996, respectively.
Page 11
Supplemental Schedules
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Line 27a-- Schedule of Assets Held for Investment
September 30, 1997
Number
of Shares
Description or Units Cost Market
- -----------------------------------------------------------------------------
Money Market Funds:
CMA Money Fund 102,145 $102,145 $102,145
-------------------
102,145 102,145
U.S. Treasury Bills and Notes:
U.S. Treasury Note, interest at 6.375%
matures on July 15, 1999 40,000 40,351 40,380
U.S. Treasury Note, interest at 6.375%
matures on August 15, 2002 70,000 69,717 71,092
U.S. Treasury Note, interest at 6.250%
matures on February 15, 2003 50,000 50,226 50,492
U.S. Treasury Note, interest at 6.500%
matures on May 15, 2005 65,000 64,850 66,408
U.S. Treasury Note, interest at 7.875%
matures on May 15, 2006 45,000 44,908 47,066
-------------------
270,052 275,438
Mutual Funds:
Fidelity Advisor Growth Opportunities Fund 5,452 174,101 238,214
Merrill Lynch Federal Security Trust 2,958 28,208 28,690
Merrill Lynch International Equity Fund 14,163 114,457 176,180
Merrill Lynch Retirement Preservation Trust 286,067 286,067 286,067
Nicholas Applegate Core Growth Fund 15,793 278,661 345,216
-------------------
881,494 1,074,367
Page 12
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Line 27a-- Schedule of Assets Held for Investment(continued)
September 30, 1997
Number
of Shares
Description or Units Cost Market
- -----------------------------------------------------------------------------
Common Stocks:
Abbott Labs 275 11,864 17,579
American Express Company 400 17,503 32,750
American International Group Inc. 373 19,805 38,477
Automatic Data Processing 730 27,002 36,500
Autozone Inc. Nevada 820 21,771 24,496
Boston Scientific Corp. 450 19,307 24,834
Carnival Corp. 760 11,124 35,150
Cisco Systems Inc. 410 10,108 29,954
Coca Cola 860 26,907 52,460
Colgate Palmolive 950 31,956 66,189
Columbia/HCA Healthcare 805 23,099 23,143
CPC International Inc. 210 15,145 19,450
Compaq Computer Corp. 360 27,054 26,910
Data Research Associates, Inc. 3,830 53,164 55,290
Emerson Electric Co. 240 8,741 13,825
Federal Home Loan Mortgage 1,646 20,874 58,019
Federal National Mortgage Association 1,475 32,626 69,325
First Data Corporation 1,370 53,509 51,454
General Electric 1,110 33,187 75,537
General RE Corp. 115 17,586 22,826
Gillette Co. 1,221 52,714 105,378
Green Tree Financial Corp. 690 23,460 32,430
HFS Inc. 560 34,758 41,684
Hewlett Packard Co. 1,010 42,139 70,248
Home Depot Inc. 455 13,433 23,710
Intel Corp. 540 8,906 49,848
Interpublic Group of Companies, Inc. 600 18,734 30,787
Johnson & Johnson 1,057 34,423 60,958
McDonalds Corp. 1,237 46,431 58,903
Medtronic Inc. 800 21,700 37,700
Merck & Co. Inc. 900 64,469 89,934
Microsoft 260 13,438 34,401
Nationsbank Corp. 548 19,333 33,900
Oracle 1,125 19,625 40,991
Page 13
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Line 27a-- Schedule of Assets Held for Investment(continued)
September 30, 1997
Number
of Shares
Description or Units Cost Market
- -----------------------------------------------------------------------------
Common Stocks (continued):
Pepsico Inc. 1,687 48,768 68,411
Pfizer Inc. 1,500 45,014 90,177
Philip Morris Cos. Inc. 810 22,408 33,663
Proctor Gamble 535 13,614 36,938
Reuters Holding 330 9,721 23,512
Royal Dutch Petroleum 292 10,859 16,206
Schering Plough Corp. 470 11,841 24,204
Sears Roebuck 460 23,118 26,191
Staples Inc. 1,410 34,119 38,951
Texas Instruments 270 22,826 36,180
Walt Disney Company 685 34,741 55,221
Wells Fargo & Co. 100 12,436 27,500
--------------------
1,185,360 1,962,194
Participant Loans, Interest
From 6% to 9% 25,793 25,793
---------------------
$2,464,844 $3,439,937
=====================
Page 14
<TABLE>
<CAPTION>
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Line 27d-- Schedule of Reportable Transactions
Year ended September 30, 1997
Purchase Sales
------------------------------ ----------------------------------------------------------
Purchase Number of Selling Cost of Number of Net Gain
Description Price Transactions Price Asset Transactions (Loss)
- ---------------------------------------------------------------- ----------------------------------------------------------
Category (iii) -- A series of securities transactions in excess of 5% of
the fair value of plan assets as the beginning of the year
<S> <C> <C> <C> <C> <C> <C>
CMA Money Fund $804,333 345 $825,262 $825,262 132 $-
Note 1: There were no category (i), (ii), or (iv) reportable transactions during the year ended September 30, 1997.
Note 2: Commissions and fees related to purchases and sales of investments are included in the cost of the investment or the
proceeds from the sale and are not separately identified by the investment manager.
Page 15
</TABLE>
SIGNATURES
The plan. Pursuant to the requirements of the Securities and Exchange
Act of 1934, the trustees (or other persons who administer the employee
benefit plan) have duly caused this annual report to be signed on its
behalf by undersigned hereunto duly authorized.
DATA RESEARCH ASSOCIATES, INC.
401(K) PROFIT SHARING PLAN
12/10/97 /s/ Michael J. Mellinger
_________________ _____________________________________
Date Michael J. Mellinger; as sole trustee
Page 16
EXHIBIT 1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8, No. 33-77160) pertaining to the Data Research Associates, Inc.
401(k) Profit Sharing Plan of our report dated December 2, 1997, with
respect to the financial statements and schedules of the Data Research
Associates, Inc. 401(k) Profit Sharing Plan included in this Annual Report
(Form 11-K) for the year ended September 30, 1997.
/s/ Ernst & Young LLP
_____________________
St. Louis, Missouri
December 4, 1997
Page 17
