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Previous: MILLER INDUSTRIES INC /TN/, SC 13G, 1998-07-14 |
Next: LABORATORY SPECIALISTS OF AMERICA INC, 8-K, 1998-07-14 |
<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 11-K
(Mark One)
[ x ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
NO
For the fiscal year ended December 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from _______________to________________
000-22125
____________
(Commission File Number)
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Diamond Technology Partners Incorporated 401(k) Plan
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
Diamond Technology Partners Incorporated
875 North Michigan Avenue, Suite 3000
Chicago, Illinois 60611
<PAGE> 2
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
TABLE OF CONTENTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Page(s)
-------
<S> <C>
Independent Auditors' Report.................................................... 1
Financial Statements:
Statement of Net Assets Available for Plan Benefits as of
December 31, 1997, with Fund Information................................ 2
Statement of Net Assets Available for Plan Benefits as of
December 31, 1996, with Fund Information................................ 3
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1997, with Fund Information............. 4
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1996, with Fund Information............. 5
Notes to Financial Statements.............................................. 6-9
Schedules:
Item 27a - Schedule of Assets Held for Investment Purposes................. 10-13
Item 27d - Schedule of Reportable Transactions in Excess
of 5% of the Fair Value of Plan Assets.................................. 14
</TABLE>
<PAGE> 3
INDEPENDENT AUDITORS' REPORT
The Trustees of the
Diamond Technology Partners
Incorporated 401(k) Plan:
We have audited the accompanying statements of net assets available for plan
benefits of Diamond Technology Partners Incorporated 401(k) Plan (the Plan) as
of December 31, 1997 and 1996, and the related statements of changes in net
assets available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits as of December
31, 1997 and 1996, and the changes in net assets available for plan benefits for
the years then ended in conformity with generally accepted auditing principles.
Our audits were performed 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 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 the net assets available for plan benefits of each
fund. The supplementary 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.
The schedule of assets held for investment purposes that accompanies the Plan's
financial statements does not disclose the historical cost of certain Plan
assets held by the Plan custodian as of or during the year ended December 31,
1997. Disclosure of this information is required by the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Security Act of 1974.
Chicago, Illinois KPMG Peat Marwick LLP
July 13, 1998
1
<PAGE> 4
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(K) PLAN
Statement of Net Assets Available for Plan Benefits,
with Fund Information
December 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund Information
--------------------------------------------------------------------
Personal Baron Founders Invesco Ivy
Choice Assets Growth Total International
Accounts Fund Fund Return Fund
--------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments:
Money market fund,
at market value -- -- -- -- --
Domestic equity fund -- 1,469,421 1,332,682 278,880 --
International equity fund -- -- -- -- 574,605
Fixed income fund -- -- -- -- --
Personal choice common and preferred stocks 1,966,966 -- -- -- --
Personal choice money market fund 216,710 -- -- -- --
Personal choice mutual funds 372,940 -- -- -- --
Personal choice bond 2,903 -- -- -- --
Participant notes receivable -- -- -- -- --
--------- --------- --------- --------- ---------
Total investments 2,589,519 1,469,421 1,332,682 278,880 574,605
--------- --------- --------- --------- ---------
Contributions receivable:
Participant -- -- -- -- --
Other -- -- -- -- --
--------- --------- --------- --------- ---------
Net assets available for plan benefits 2,559,519 1,469,421 1,332,682 278,880 574,605
========= ========= ========= ========= =========
<CAPTION>
Fund Information
---------------------------------------------------
Schwab Participant
1000 Other Notes
Fund Funds Receivable Other Total
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Assets:
Investments:
Money market fund,
at market value $ -- 43,201 -- -- 43,201
domestic equity fund 642,593 -- -- -- 3,723,576
International equity fund -- -- -- -- 574,605
Fixed income fund -- 101,054 -- -- 101,054
Personal choice common and preferred stocks -- -- -- -- 1,966,966
Personal choice money market fund -- -- -- -- 216,710
Personal choice mutual funds -- -- -- -- 372,940
Personal choice bond -- -- -- -- 2,903
Participant notes receivable -- -- 206,808 -- 206,808
--------- --------- --------- --------- ---------
Total investments 642,593 144,255 206,808 -- 7,208,763
--------- --------- --------- --------- ---------
Contributions receivable:
Participant -- -- -- 29,845 29,845
Other -- -- -- 56,564 56,564
--------- --------- --------- --------- ---------
Net assets available for plan benefits $ 642,593 144,255 206,808 86,409 7,295,172
========= ========= ========= ========= =========
</TABLE>
See accompanying notes to financial statements.
2
<PAGE> 5
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Statement of Net Assets Available for Plan Benefits,
with Fund Information
December 31,1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------------
Charles
Schwab & Personal Baron Founders Invesco
Co., Inc. Choice Assets Growth Total
Cash Accounts Fund Fund Return
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Assets:
Investments:
Money market fund,
at market value $ -- -- -- -- --
Domestic equity fund -- -- 765,860 811,280 108,576
International equity fund -- -- -- -- --
Fixed income fund -- -- -- -- --
Personal choice common and preferred
stocks -- 938,272 -- -- --
Personal choice noney market fund -- 243,449 -- -- --
Personal choice mutual funds -- 156,116 -- -- --
Personal choice bond -- 2,243 -- -- --
Participant notes receivable -- -- -- -- --
--------- --------- --------- --------- ---------
Total investments -- 1,340,080 765,860 811,280 108,576
--------- --------- --------- --------- ---------
Cash and cash equivalents 1,564 -- -- -- --
--------- --------- --------- --------- ---------
Net assets available for plan benefits $ 1,564 1,340,080 765,860 811,280 108,576
========= ========= ========= ========= =========
<CAPTION>
Fund Information
----------------------------------------------------
Ivy Schwab Participant
International 1000 Other Notes
Fund Fund Funds Receivable Total
------------ --------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Assets:
Investments:
Money market fund,
at market value $ -- -- 30,194 -- 30,194
Domestic equity fund -- 318,151 -- -- 2,003,867
International equity fund 327,821 -- -- -- 327,821
Fixed income fund -- -- 71,844 -- 71,844
Personal choice common and preferred
stocks -- -- -- -- 938,272
Personal choice money market fund -- -- -- -- 243,449
Personal choice mutual funds -- -- -- -- 156,116
Personal choice bond -- -- -- -- 2,243
Participant notes receivable -- -- -- 104,133 104,133
--------- --------- --------- --------- ---------
Total investments 327,821 318,151 102,038 104,133 3,877,939
--------- --------- --------- --------- ---------
Cash and cash equivalents -- -- -- -- 1,564
--------- --------- --------- --------- ---------
Net assets available for plan benefits $ 327,821 318,151 102,038 104,133 3,879,503
========= ========= ========= ========= =========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 6
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(K) PLAN
Statement of Changes in Net Assets Available for Plan Benefits,
with Fund Information
Year ended December 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund Information
--------------------------------------------------------------------------
Charles
Schwab & Personal Baron Founders Invesco
Co., Inc. Choice Assets Growth Total
Cash Accounts Fund Fund Return
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income $ -- 57 -- -- --
Dividend income -- -- -- 183,143 10,380
Gains on sale of investments -- -- 19,920 20,382 275
Net appreciation in fair
market value of investments -- 415,750 320,326 49,024 32,942
Contributions - participant -- 348,221 324,554 313,028 60,096
Contributions - other -- 287,259 180,141 113,107 55,397
Interest on loans receivable from participants -- 3,346 2,477 2,481 416
---------- ---------- ---------- ---------- ----------
Total additions -- 1,054,633 847,418 681,165 159,506
---------- ---------- ---------- ---------- ----------
Deductions from net assets attributable to-
benefits paid to participants -- 50,888 30,877 39,787 1,033
---------- ---------- ---------- ---------- ----------
Total deductions -- 50,888 30,877 39,787 1,033
---------- ---------- ---------- ---------- ----------
Other increases (decreases):
Loans to participants -- (33,009) (42,582) (46,359) (3,641)
Principal loan repayments -- 19,872 13,933 13,796 2,490
Interfund transfers, net (1,564) 228,831 (84,331) (87,413) 12,982
---------- ---------- ---------- ---------- ----------
Total other increases (decreases) (1,564) 215,694 (112,980) (119,976) 11,831
---------- ---------- ---------- ---------- ----------
Increase (decrease) in net assets
available for plan benefits (1,564) 1,219,439 703,561 521,402 170,304
Net assets available for plan benefits:
Beginning of year 1,564 1,340,080 765,860 811,280 108,576
---------- ---------- ---------- ---------- ----------
End of year $ -- 2,559,519 1,469,421 1,332,682 278,880
========== ========== ========== ========== =========
<CAPTION>
Fund Information
------------------------------------------------------------------
Ivy Schwab Participant
International 1000 Other Notes
Fund Fund Funds Receivable Other Total
------------- --------- --------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income $ -- -- -- -- -- 57
Dividend income 8,320 6,338 6,697 -- -- 214,878
Gain on sale of investments 5,385 10,753 37 -- -- 56,752
Net appreciation in fair
market value of investments 28,082 111,117 2,273 -- -- 959,514
Contributions - participant 130,573 152,961 29,516 -- 29,845 1,388,794
Contributions - other 127,230 80,222 32,812 -- 56,564 932,732
Interest on loans receivable from participants 1,218 1,294 434 -- -- 11,666
--------- --------- --------- --------- --------- ---------
Total additions 300,808 362,685 71,769 -- 86,409 3,564,393
--------- --------- --------- --------- --------- ---------
Deductions from net assets attributable to-
benefits paid to participants 21,524 2,922 1,693 -- -- 148,724
--------- --------- --------- --------- --------- ---------
Total deductions 21,524 2,922 1,693 -- -- 148,724
--------- --------- --------- --------- --------- ---------
Other increases (decreases):
Loans to participants (15,433) (18,940) (9,655) 169,619 -- --
Principal loan repayments 7,089 7,418 2,346 (66,944) -- --
Interfund transfers, net (24,156) (23,799) (20,550) -- -- --
--------- --------- --------- --------- --------- ---------
Total other increases (decreases) (32,500) (35,321) (27,859) 102,675 -- --
--------- --------- --------- --------- --------- ---------
Increase (decrease) in net assets
available for plan benefits 246,784 324,442 42,217 102,675 86,409 3,415,669
Net assets available for plan benefits:
Beginning of year 327,821 318,151 102,038 104,133 -- 3,879,503
--------- --------- --------- --------- --------- ---------
End of year $ 574,605 642,593 144,255 206,808 86,409 7,295,172
========= ========= ========= ========= ========= =========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 7
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(K) PLAN
Statement of Changes in Net Assets Available for Plan Benefits,
with Fund Information
Year ended December 31, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------------------------------
Rembrandt
Rembrandt S&P
LaSalle Income Rembrandt Rembrandt 500
National Bank Plus Balanced Growth Index
Cash Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income $ -- -- -- -- --
Dividend income -- 1,560 577 803 --
Gains (losses) on sales of investments -- -- 1,442 12,982 22,188
Net appreciation (depreciation) in
fair value of investments -- -- -- -- --
Contributions - participants -- 15,944 7,601 26,920 38,060
Contributions - other -- -- -- -- --
Interest on loans receivable
from participants -- 33 25 194 91
----------- ----------- ----------- ----------- -----------
Total additions -- 17,537 9,645 40,899 60,339
----------- ----------- ----------- ----------- -----------
Deductions from net assets
attributed to -
benefits paid to
participants -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total deductions -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Other increases (decreases):
Loans to participants -- (1,286) -- -- --
Repayments of participant
notes receivable -- 263 161 187 384
Interfund transfers, net -- -- -- 3,967 (109)
Transfer of assets from
previous custodian -- (181,960) (125,758) (389,596) (558,200)
Other transfers (21,901) -- -- -- --
----------- ----------- ----------- ----------- -----------
Total other increases (decreases) (21,901) (182,983) (125,597) (385,442) (557,925)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) (21,901) (165,446) (115,952) (344,543) (497,586)
Net assets available for plan benefits:
Beginning of year 21,901 165,446 115,952 344,543 497,586
----------- ----------- ----------- ----------- -----------
End of year $ -- -- -- -- --
=========== =========== =========== =========== ===========
<CAPTION>
Fund Information
---------------------------------------------------------------------------------
Charles
Rembrandt Schwab & Personal Baron Founders
International Co. , Inc. Choice Assets Growth
Fund Cash Accounts Fund Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income $ -- -- 9,465 588 675
Dividend income -- -- 209 826 65,759
Gains (losses) on sales of investments 7,728 -- -- 9,258 15,706
Net appreciation (depreciation) in
fair value of investments -- -- 72,742 53,037 (1,534)
Contributions - participant 24,172 -- 235,494 227,549 253,324
Contributions - other -- -- 437,056 127,051 203,842
Interest on loan receivable
from participants 284 -- 2,240 1,185 1,378
----------- ----------- ----------- ----------- -----------
Total additions 32,184 -- 757,206 419,494 539,150
----------- ----------- ----------- ----------- -----------
Deductions from net assets
attributed to -
benefits paid to
participants -- -- 16,764 39,220 42,352
----------- ----------- ----------- ----------- -----------
Total deductions -- -- 16,764 39,220 42,352
----------- ----------- ----------- ----------- -----------
Other increases (decreases):
Loans to participant (3,214) -- (13,024) (3,863) (4,015)
Repayments of participant
notes receivable 494 -- 8,143 4,306 5,006
Interfund transfers, net (3,858) (1,564) 194,908 (11,153) (149,952)
Transfer of assets from
previous custodian (453,443) -- 409,610 396,296 463,443
Other transfers -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total other increases (decreases) (460,021) 1,564 599,638 385,586 314,482
----------- ----------- ----------- ----------- -----------
Net increase (decrease) (427,837) 1,564 1,340,080 765,860 811,280
Net assets available for plan benefits:
Beginning of year 427,837 -- -- -- --
----------- ----------- ----------- ----------- -----------
End of year $ -- 1,564 1,340,080 765,860 811,280
=========== =========== =========== =========== ===========
<CAPTION>
Fund Information
----------------------------------------------------------------------
Invesco Ivy Schwab Participant
Total International 1000 Other notes
Return Fund Fund funds receivable Total
---------- ------------- ---------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income $ 76 263 193 93 -- 11,353
Dividend income 2,958 7,385 3,958 5,738 -- 89,773
Gains (losses) on sales of investments 912 4,295 4,026 (27) -- 78,510
Net appreciation (depreciation) in
fair value of investments 6,416 32,095 32,792 682 -- 196,230
Contributions - participants 42,889 98,945 107,377 30,155 -- 1,108,430
Contributions - other 21,501 39,880 85,847 15,448 -- 930,625
---------- ---------- ---------- ---------- ---------- ----------
Interest on loan receivable
from participants 229 415 362 375 -- 6,811
Total additions 74,981 183,278 234,555 52,464 -- 2,421,732
---------- ---------- ---------- ---------- ---------- ----------
Deductions from net assets
attributed to -
benefits paid to
participants 10,201 28,644 12,285 20,979 -- 170,445
---------- ---------- ---------- ---------- ---------- ----------
Total deductions 10,201 28,644 12,285 20,979 -- 170,445
---------- ---------- ---------- ---------- ---------- ----------
Other increases (decreases):
Loans to participants (829) (2,118) (2,579) (20,315) (51,242) --
Repayments of participant
notes receivable 832 1,509 1,315 1,361 (23,961) --
Interfund transfers, net (7,360) (12,630) (26,693) 11,316 -- --
Transfer of assets from
previous custodian 51,153 186,421 123,838 78,191 -- --
Other transfers -- -- -- -- -- (21,901)
---------- ---------- ---------- ---------- ---------- ----------
Total other increases (decreases) 43,796 173,187 95,881 70,553 (27,281) 21,901
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) 108,576 327,821 318,151 102,038 27,281 2,229,386
Net assets available for plan benefits:
Beginning of year -- -- -- -- 76,852 1,650,117
---------- ---------- ---------- ---------- ---------- ----------
End of year $ 108,576 327,821 318,151 102,038 104,133 3,879,503
========== ========== ========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 8
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(K) PLAN
Notes to Financial Statements
December 31, 1997 and 1996
- -------------------------------------------------------------------------------
(1) DESCRIPTION OF PLAN
The following brief description of the Diamond Technology Partners
Incorporated 401(k) Plan (Plan) is provided for general information
purposes only. Participants should refer to the Plan agreement for more
complete information. The plan was amended in its entirety and
restated, effective April 18, 1997.
(a) GENERAL
The Plan is a voluntary defined contribution plan for all eligible
employees of Diamond Technology Partners Incorporated (Company) who meet
the minimum age and service requirements specified in the Plan
agreement. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA). The number of employees
participating in the Plan totaled 204 and 175 at December 31, 1997 and
1996, respectively.
(b) CONTRIBUTIONS
Each year, participants may contribute up to 15% of pretax annual
compensation, as defined in the Plan. Participants may also contribute
amounts representing distributions from other qualified defined-benefit
or contribution plans. Additional amounts may be contributed at the
option of the Company's trustees. Contributions are limited in
accordance with IRS regulations. No Company contributions have been made
to date.
(c) PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's
contribution and an allocation of Plan earnings and Company
contributions, if any. 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
account.
(d) VESTING
Participants are immediately vested in their voluntary contributions
plus actual earnings thereon. Any Company contributions are immediately
vested.
(e) PAYMENT OF BENEFITS
On termination of service due to death, disability, or retirement, and
if the vested account balance exceeds $3,500, a participant may elect to
receive either a lump-sum amount equal to the value of the participant's
vested interest in his or her account, or annual installments over a
specified period of time not exceeding the life expectancy of the
designated beneficiary. If the vested account balance is less than
$3,500, the beneficiary will receive a lump-sum distribution.
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.
(f) ADMINISTRATIVE EXPENSES
Administrative expenses amounting to $17,427 and $15,185 in 1997 and
1996, respectively, have been directly paid by the Company. It is not
the intention of the Company to obtain reimbursement from the Plan for
these payments.
(Continued)
6
<PAGE> 9
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Notes to Financial Statements
- -------------------------------------------------------------------------------
(g) PARTICIPANT NOTES RECEIVABLE
Participants may borrow a minimum of $1,000 to a maximum equal to the
lesser of $50,000 or 50% of their vested account balance. Loan
transactions are treated as a transfer from the investment fund to the
Participant Notes fund. Loan terms range from one to five years, and 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
a rate commensurate with the local prevailing rates as determined
quarterly by the Plan administrator. Interest rates range from 7.25% to
9.5%. Principal and interest are paid ratably through bimonthly payroll
deductions.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual
method 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 net assets available for
plan benefits and disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts of changes in
net assets available for plan benefits during the reporting period.
Actual results could differ from those estimates.
(c) INVESTMENT VALUATION AND INCOME RECOGNITION
The assets of the Plan are held by the Plan Custodian. The Plan's
investments are recorded at fair value based on quoted market prices.
Security transactions are recognized on a trade date basis. Participant
notes receivable are valued at cost, which approximates fair value.
Interest and dividend income on investments is recognized as earned.
(d) PAYMENT OF BENEFITS
Benefits are recorded when paid.
(e) RECLASSIFICATIONS
Where appropriate certain items relating to the prior year have been
reclassified to conform to the current year presentation.
(Continued)
7
<PAGE> 10
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Notes to Financial Statements
(3) INVESTMENTS
Investments were as follows at December 31, 1997 and 1996:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Number of shares December 31,
or principal amount 1997 1996
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investments at fair value:
Baron Assets Fund 30,297 and 21,134, respectively 1,469,421 765,860
Founders Growth Fund 77,123 and 51,120, respectively 1,332,682 811,280
Ivy International Fund 14,722 and 9,134, respectively 574,605 327,821
Schwab 1000 Fund 24,194 and 15,642, respectively 642,593 318,151
Invesco Total Return Fund 9,587 and 4,468, respectively 278,880 108,576
Other Funds 9,400 and 6,855, respectively 101,054 71,844
Schwab Money Market Fund 43,201 and 30,194, respectively 43,201 30,194
Personal Choice Mutual Funds 16,898 and 9,343, respectively 372,940 156,116
Personal Choice Stocks 97,381 and 37,054, respectively 1,966,966 938,272
Personal Choice Bonds 1,200 and 1,200, respectively 2,903 2,243
Personal Choice Money Market 216,710 and 243,449, respectively 216,710 243,449
Participant Notes Receivable Secured by participant's vested 206,808 104,133
account balances; fixed interest
rates ranging from 7.25% to 9%
- -------------------------------------------------------------------------------------------------------------------
$ 7,208,763 3,877,939
===================================================================================================================
</TABLE>
(4) INVESTMENTS EXCEEDING 5% OF NET ASSETS
The Plan's investments which exceed 5% of net assets available for plan benefits
as of December 31, 1997 and 1996 are as follows:
<TABLE>
<CAPTION>
==========================================================================
December 31,
Description 1997 1996
- --------------------------------------------------------------------------
<S> <C> <C>
Baron Asset Fund $1,469,421 765,860
Founders Growth Fund 1,332,682 811,280
Ivy International Fund 574,605 327,821
Schwab 1000 Fund 642,593 318,151
Diamond Technology Partners CIA** 491,800 --
Safeguard Scientifics, Inc.** 627,626 500,380
==========================================================================
</TABLE>
**Represents a party-in-interest
(Continued)
8
<PAGE> 11
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Notes to Financial Statements
- -------------------------------------------------------------------------------
(5) DISTRIBUTIONS DUE TO PARTICIPANTS
As of December 31, 1997 and 1996, there were no distributions
due to terminated or inactive participants.
(6) TAX STATUS
The Plan obtained its latest determination letter on May 15,
1997 in which the Internal Revenue Service informed the Company that
the Plan, as amended on December 13, 1996, is designed in accordance
with the applicable sections of the Internal Revenue Code (IRC),
including the amendments required by the Tax Reform Act of 1986. The
Plan has been amended and restated since receiving the determination
letter. However, the Plan's Trustees and administrator believe that the
Plan is designed and is currently being operated in compliance with the
applicable requirements of the IRC.
(7) PLAN TERMINATION
While the Company has not expressed any intent to terminate the Plan,
they are free to do so at any time, subject to the provisions set forth
in ERISA.
9
<PAGE> 12
Schedule 1
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Description of
investment including
number of shares
or face value
in dollars,
interest rate
and maturity date Cost Fair value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money market funds:
Schwab Money Market
Fund 43,201 $ 43,201 $ 43,201
---------- ---------- ----------
Total money market funds 43,201 43,201 43,201
---------- ---------- ----------
Domestic equity funds:
Baron Assets Fund 30,297 1,099,996 1,469,421
Founders Growth Fund 77,123 1,274,675 1,332,682
Invesco Total Return Fund 9,587 239,559 278,880
Schwab 1000 Fund 24,194 498,779 642,593
---------- ---------- ----------
Total domestic equity funds 141,201 3,113,009 3,723,576
---------- ---------- ----------
International equity funds:
Ivy International Fund 14,722 518,061 574,605
---------- ---------- ----------
Total international equity funds 14,722 518,061 574,605
---------- ---------- ----------
Fixed income funds:
Strong Government Securities
Fund 9,400 98,131 101,054
---------- ---------- ----------
Total fixed income funds 9,400 98,131 101,054
---------- ---------- ----------
Personal choice account mutual funds:
Amcent: Equity Growth 2,277 * 43,346
Ariel Growth Fund 134 * 5,336
Baron Asset Fund 130 * 6,312
Baron Small Cap Fund 543 * 5,594
Cohen & Steers Realty Sh 708 * 35,540
Crabbe Huson Real Estate 232 * 2,959
Crabbe Huson Special Fund 184 * 2,577
Dreyfus Emerging Leaders 83 * 2,050
Dreyfus Midcap Value Fund 298 * 6,116
Fidelity Contra Fund 235 * 10,952
Fidelity Equity Income II 1,611 * 43,535
Fidelity Otc Portfolio 144 * 4,821
Fidelity Slct Electronic 205 * 6,320
Fidelity Slct Regl Banks 122 * 4,990
Founder Balance Fund 502 * 5,696
Heartland Small Cap Contrarian Fund 718 * 9,625
Invesco Small Company Va 276 * 3,228
Invesco Strat Health Science Fund 112 * 5,516
Invesco Strat Technology Fund 239 * 6,435
Janus Fund Inc. 136 * 3,392
Janus Growth & Income 316 * 7,353
Janus Overseas Fund 249 * 4,323
Janus Worldwide Fund 53 * 1,991
Kaufmann Fund, Inc. 389 * 2,481
</TABLE>
(Continued)
10
<PAGE> 13
Schedule 1
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Description of
investment including
number of shares
or face value
in dollars,
interest rate
and maturity date Cost Fair value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Montgomery Emerging Markets 169 * 2,183
Montgomery Growth Fund 113 * 2,477
Oakmark Fund- Harris 58 * 2,343
Oakmark Small Cap Fund 131 * 2,539
Oak Value Fund 178 * 4,134
Oberweis Emerging Growth 106 * 2,735
PBHG Core Growth Fund 177 * 2,122
PBHG Emerging Growth Fund 222 * 5,183
PBHG Growth Fund 74 * 1,904
PBHG Technology and Comms Fund 107 * 1,864
Royce Micro Cap Fd 1,896 * 17,826
Schwab S&P 500 Inv Shs 793 * 11,864
Scudder International St 663 * 30,317
Strong Opportunity Fund 67 * 2,520
Strong Total Return Fund 1,571 * 41,558
Templeton China World Fd 210 * 1,759
Twentieth Century Ultra 136 * 3,702
Warburg Pincus Small Com 331 * 5,422
---------- ---------- ----------
Total personal choice account mutual funds 16,898 * 372,940
---------- ---------- ----------
Personal choice account common and preferred stocks:
Adaptec Inc. 30 * 1,114
AT&T Corporation 170 * 10,409
ATC Communications Group 200 * 256
American Technology Corp 860 * 3,064
Ameritech Corporation 167 * 13,454
Andrew Corporation 150 * 3,600
Apertus Technology Inc. 2,500 * 2,969
Apple Computer Inc. 1,125 * 14,766
Arterial Vascular Eng 200 * 13,000
At Home Corp Cl A 113 * 2,839
BellSouth Corporation 100 * 5,631
Boston Chicken Inc. 200 * 1,288
Cambridge Tech Partners 590 * 24,559
Cannondale Corporation 100 * 2,175
Caterpillar, Inc. 110 * 5,335
Cephalon Inc. 300 * 3,413
Cerner Corp 2,446 * 51,672
Charles Schwab Corporation 870 * 36,485
Checkfree Corp 450 * 12,122
Chevron Corporation 116 * 8,931
Chromavision Med Sys Inc. 3,196 * 28,764
Cisco Systems Inc. 300 * 16,725
Coca Cola Company 50 * 3,334
Coherent Comm Sys Corp 300 * 8,363
Compaq Computer Corp 50 * 2,825
Concurrent Computer New 500 * 1,172
Coram Healthcare Corp 500 * 1,687
Cornerstone Imaging, Inc. 1,000 * 5,062
</TABLE>
11 (Continued)
<PAGE> 14
Schedule 1
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Description of
investment including
number of shares
or face value
in dollars,
interest rate
and maturity date Cost Fair value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cyberguard Corporation 200 * 1,125
DAW Technologies, Inc. 500 * 906
Dell Computer Corp 50 * 4,200
Diamond Multimedia Systems 1,072 * 9,514
Diamond Technology Partners Cl A** 31,729 * 491,800
Disney Walt Holding Co. 100 * 9,900
E-Trade Group 600 * 13,800
Extended Stay America 500 * 6,219
Exxon Corp 100 * 6,106
Filenet Corp 150 * 4,519
First Chicago NBD Corporation 206 * 17,280
First Data Corp 100 * 2,925
Friedman Billings Ramsey 20 * 359
General Electric 20 * 1,486
General Magic, Inc. 200 * 275
General Motors Corporation 57 * 3,458
Hanover Direct 3,200 * 9,600
Harken Energy Company 951 * 6,657
Hewlett-Packard 151 * 9,428
Hutchinson Whampoa Adr 50 * 1,555
I Flow Corporation 600 * 2,025
Illinois Tool Works 100 * 6,013
Informix Corp 2,110 * 10,023
Integrated Systems Consulting Group 1,400 * 15,575
Intel Corporation 355 * 24,947
International Paper Co. 150 * 6,469
Intuit Inc. 350 * 14,438
Iridium World Com Cl Af 120 * 4,380
Johnson & Johnson 30 * 1,976
K Mart Corporation 200 * 2,300
LCI International Inc. 640 * 19,680
Loral Space Communications LTD 200 * 4,287
Lucent Technologies, Inc. 222 * 17,783
MMI Companies Inc. 200 * 5,025
Mapinfo Corporation 200 * 2,375
Marvel Entertainment Group 100 * 50
McDonalds Corporation 1 * 31
Medpartners Inc. New 150 * 3,356
Microsoft Corporation 300 * 38,775
Midwest Express Holding, Inc. 150 * 5,822
Minnesota Mining & Mfg 86 * 7,111
Miravant Med Tech 300 * 12,000
Motorola, Inc. 41 * 2,358
NCR Corp New 4 * 111
Nike, Inc. Class B 110 * 4,492
Northface Inc. 35 * 770
OAO Tech Solutions Inc. 3,797 * 35,911
Omnipoint Corp 100 * 2,325
Onewave, Inc. 150 * 244
Onsale Inc. 300 * 5,400
Oracle 650 * 14,502
Oxford Health Plans New 250 * 3,891
</TABLE>
12 (Continued)
<PAGE> 15
Schedule 1
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Description of
investment including
number of shares
or face value
in dollars,
interest rate
and maturity date Cost Fair value
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Peapod Inc. 714 * 4,641
Peoplesoft, Inc. 428 * 16,692
Petsmart Inc. 500 * 3,625
Pfizer Inc. 250 * 18,641
Philip Morris Cos Inc. 146 * 6,607
Platinum Technology Inc. 400 * 11,300
PSINet, Inc. 100 * 513
Quantum Corp 25 * 502
Quick & Reilly Group, Inc. 37 * 1,604
Raytheon Co. New Cl A 2 * 99
S C I Systems, Inc. 36 * 1,568
Safeguard Scientifics, Inc.** 20,004 * 627,626
Sanchez Computer 646 * 18,814
Scopus Tech Inc. 500 * 6,000
Sears Roebuck and Co. 50 * 2,263
Service Master Ltd Partnership 533 * 15,590
Shiva Corp 200 * 1,713
Sigcorp, Inc. 160 * 4,696
Sun Microsystems Inc. 30 * 1,196
Syntel Inc. 200 * 2,850
T C S I Corporation 595 * 4,760
Tellabs Inc. 235 * 12,424
Telxon Corporation 500 * 11,940
Tera Computer Co. 100 * 1,525
Toy Biz, Inc. 200 * 1,550
UAL Corporation New 40 * 3,700
Whittman Hart, Inc. 400 * 13,700
YPF Sociedad Spon ADRF 300 * 10,256
---------- ---------- ----------
Total personal choice account common and preferred stocks 97,381 * 1,966,966
---------- ---------- ----------
Personal Choice Account Bond:
U.S. Treasury Strip 0% 1,200 * 2,903
---------- ---------- ----------
Total personal choice account bond 1,200 * 2,903
---------- ---------- ----------
Personal choice money market fund:
Schwab Money Market Fund 216,710 * 216,710
---------- ---------- ----------
Total personal choice account money market funds 216,710 * 216,710
---------- ---------- ----------
Total personal choice account investments * 2,559,519
---------- ---------- ----------
Participant notes receivable Interest rates 206,808 206,808
ranging from
7.25% to 9.5%
---------- ---------- ----------
$ * $7,208,763
========== ========== ==========
</TABLE>
* Information not available
** Represents a party-in-interest
See accompanying independent auditors' report.
13
<PAGE> 16
Schedule 2
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(K) PLAN
Item 27d - Schedule of Reportable Transactions or Series of Transactions in
Excess of 5% of the Current Value of Plan Assets at the Beginning of the Year
Year ended December 31, 1997
<TABLE>
<CAPTION>
================================================================================================================================
Net
Identity of Description Number of Purchase Selling Cost of gain
party involved of asset transactions price price assets (loss)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Charles Schwab & Baron Asset - domestic
Co., Inc. equity fund 111 $ 546,267 -- 546,267 --
Charles Schwab & Founders Growth - domestic
Co., Inc. equity fund 102 450,604 -- 450,604 --
Charles Schwab & Ivy International - international
Co., Inc. equity fund 98 273,092 -- 273,092 --
Charles Schwab & Schwab 1000 - domestic
Co., Inc. equity fund 98 260,646 -- 260,646 --
Charles Schwab &
Co., Inc. Diamond Technology Partners Inc.** 72 310,211 -- 310,211 --
Charles Schwab &
Co., Inc. Schwab Money Market Fund 1,475 4,128,910 -- 4,128,910 --
2,406 -- 4,155,649 4,155,649 --
===============================================================================================================================
</TABLE>
** Represents a party-in-interest
See accompanying independent auditors' report.
14
<PAGE> 17
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Trustees of the Plan have duly caused this annual report to be
signed on its behalf by the undersigned hereunto duly authorized in the City of
Chicago, State of Illinois, on July 14, 1998.
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
(Name of Plan)
By: /s/ Melvyn E. Bergstein
-------------------------------
Name: Melvyn E. Bergstein
-----------------------------
Its: Trustee
-----------------------------
By: /s/ Michael E. Mikolajczyk
-------------------------------
Name: Michael E. Mikolajczyk
-----------------------------
Its: Trustee
-----------------------------
By: /s/ Karl E. Bupp
-------------------------------
Name: Karl E. Bupp
-----------------------------
Its: Trustee
-----------------------------
By: /s/ Christopher J. Moffitt
-------------------------------
Name: Christopher J. Moffitt
-----------------------------
Its: Trustee
-----------------------------
<PAGE> 1
Exhibit 23
The Trustees of the
Diamond Technology Partners
Incorporated 401(k) Plan:
We consent to incorporation by reference in the registration statements (No.
333-31943 and No. 333-31965) on Form S-8 of Diamond Technology Partners
Incorporated of our report dated July 13, 1998, relating to the statements of
net assets available for plan benefits of Diamond Technology Partners
Incorporated 401(k) Plan as of December 31, 1997, and 1996, and the related
statements of changes in net assets available for plan benefits for the years
ended December 31, 1997 and 1996, which report appears in the December 31,
1997 report on Form 11-K of Diamond Technology Partners Incorporated 401(k)
Plan.
KPMG Peat Marwick LLP
Chicago, Illinois
July 14, 1998
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