|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: INTERUNION FINANCIAL CORP, NT 10-K, 1999-06-29 |
Next: MARKER INTERNATIONAL, NT 10-K, 1999-06-29 |
<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) FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
[ ] 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> <C>
Independent Auditors' Report 1
Financial Statements:
Statement of Net Assets Available for Plan Benefits as of
December 31, 1998, with Fund Information 2
Statement of Net Assets Available for Plan Benefits as of
December 31, 1997, with Fund Information 3
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1998, with Fund Information 4
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1997, with Fund Information 5
Notes to Financial Statements 6
SCHEDULES
1 Item 27a - Schedule of Assets Held for Investment Purposes 10
2 Item 27d - Schedule of Reportable Transactions in Excess
of 5% of the Current Value of Plan Assets 17
</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, 1998 and 1997, 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, 1998 and 1997, 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,
1998. 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
June 18, 1999
<PAGE> 4
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Statement of Net Assets Available for Plan Benefits,
with Fund Information
December 31, 1998
<TABLE>
<CAPTION>
FUND INFORMATION
----------------------------------------------------------------------------------------
CHARLES
SCHWAB & PERSONAL BARON FOUNDERS INVESCO IVY SCHWAB
CO., INC. CHOICE ASSETS GROWTH TOTAL INTERNATIONAL 1000
CASH ACCOUNTS FUND FUND RETURN FUND FUND
---------- ---------- ---------- ---------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments:
Money market fund,
at market value $ -- -- -- -- -- -- --
Domestic equity fund -- -- 2,052,647 2,180,311 390,017 -- 1,367,295
International equity fund -- -- -- -- -- 855,143 --
Fixed income fund -- -- -- -- -- -- --
Personal choice common
and preferred stocks -- 2,692,545 -- -- -- -- --
Personal choice money
market fund -- 743,667 -- -- -- -- --
Personal choice mutual funds -- 582,716 -- -- -- -- --
Personal choice bond -- 998 -- -- -- -- --
Participant notes receivable -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total investments -- 4,019,926 2,052,647 2,180,311 390,017 855,143 1,367,295
Cash and cash equivalents 1,334 -- -- -- -- -- --
Dividend receivable -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net assets available for
plan benefits $ 1,334 4,019,926 2,052,647 2,180,311 390,017 855,143 1,367,295
========== ========== ========== ========== ========== ========== ==========
<CAPTION>
FUND INFORMATION
------------------------------------
PARTICIPANT
OTHER NOTES
FUNDS RECEIVABLE OTHER TOTAL
---------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Assets:
Investments:
Money market fund,
at market value 86,185 -- -- 86,185
Domestic equity fund -- -- -- 5,990,270
International equity fund -- -- -- 855,143
Fixed income fund 151,987 -- -- 151,987
Personal choice common
and preferred stocks -- -- 2,692,545
Personal choice money
market fund -- -- -- 743,667
Personal choice mutual funds -- -- -- 582,716
Personal choice bond -- -- -- 998
Participant notes receivable -- 263,827 -- 263,827
---------- ---------- ---------- ----------
Total investments 238,172 263,827 -- 11,367,338
Cash and cash equivalents -- -- -- 1,334
Dividend receivable -- -- 573 573
---------- ---------- ---------- ----------
Net assets available for
plan benefits 238,172 263,827 573 11,369,245
========== ========== ========== ==========
</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, 1997
<TABLE>
<CAPTION>
FUND INFORMATION
----------------------------------------------------------------------------------------
PERSONAL BARON FOUNDERS INVESCO IVY SCHWAB
CHOICE ASSETS GROWTH TOTAL INTERNATIONAL 1000 OTHER
ACCOUNTS FUND FUND RETURN FUND FUND FUNDS
---------- ---------- ---------- ---------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments:
Money market fund,
at market value $ -- -- -- -- -- -- 43,201
Domestic equity fund -- 1,469,421 1,332,682 278,880 -- 642,593 --
International equity fund -- -- -- -- 574,605 -- --
Fixed income fund -- -- -- -- -- -- 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 -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total investments 2,559,519 1,469,421 1,332,682 278,880 574,605 642,593 144,255
Contributions receivable:
Participant -- -- -- -- -- -- --
Other -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net assets available for
plan benefits $2,559,519 1,469,421 1,332,682 278,880 574,605 642,593 144,255
========== ========== ========== ========== ========== ========== ==========
<CAPTION>
FUND INFORMATION
------------------------
PARTICIPANT
NOTES
RECEIVABLE OTHER TOTAL
----------- ---------- ----------
<S> <C> <C> <C>
Assets:
Investments:
Money market fund,
at market value -- -- 43,201
Domestic equity fund -- -- 3,723,576
International equity fund -- -- 574,605
Fixed income fund -- -- 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 206,808 -- 7,208,763
Contributions receivable:
Participant -- 29,845 29,845
Other -- 56,564 56,564
---------- ---------- ----------
Net assets available for
plan benefits 206,808 86,409 7,295,172
========== ========== ==========
</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, 1998
<TABLE>
<CAPTION>
FUND INFORMATION
----------------------------------------------------------------------------------
CHARLES
SCHWAB & PERSONAL BARON FOUNDERS INVESCO IVY
CO., INC. CHOICE ASSETS GROWTH TOTAL INTERNATIONAL
CASH ACCOUNTS FUND FUND RETURN FUND
---------- ---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income $ -- 18,776 1 -- 1,509 --
Dividend income -- 28,430 1,652 111,074 16,971 14,040
Gains (losses) on sale of investments -- 37,707 (19,186) 13,916 991 2,452
Net appreciation/depreciation in fair
market value of investments -- 379,956 109,191 260,815 20,215 27,420
Contributions - participant -- 370,341 435,851 411,481 83,972 172,589
Contributions - other -- 236,762 311,225 166,072 14,292 138,836
Interest on loans receivable from
participants -- 3,592 4,055 4,984 613 1,555
Other income 1,334 -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total additions 1,334 1,075,564 842,789 968,342 138,563 356,892
---------- ---------- ---------- ---------- ---------- ----------
Deductions from net assets attributable to:
Benefits paid to participants -- 102,940 10,167 31,618 14,778 6,909
Trustee/recordkeeper fees -- 991 264 340 78 71
---------- ---------- ---------- ---------- ---------- ----------
Total deductions -- 103,931 10,431 31,958 14,856 6,980
---------- ---------- ---------- ---------- ---------- ----------
Other increases (decreases):
Loans to participants -- (22,453) (37,514) (46,509) (12,310) (2,425)
Principal loan repayments -- 14,065 20,332 28,100 2,755 4,161
Interfund transfers, net -- 497,162 (231,950) (70,346) (3,015) (71,110)
---------- ---------- ---------- ---------- ---------- ----------
Total other increases (decreases) -- 488,774 (249,132) (88,755) (12,570) (69,374)
---------- ---------- ---------- ---------- ---------- ----------
Increase (decrease) in net assets
available for plan benefits 1,334 1,460,407 583,226 847,629 111,137 280,538
Net assets available for plan benefits:
Beginning of year -- 2,559,519 1,469,421 1,332,682 278,880 574,605
---------- ---------- ---------- ---------- ---------- ----------
End of year $ 1,334 4,019,926 2,052,647 2,180,311 390,017 855,143
========== ========== ========== ========== ========== ==========
<CAPTION>
FUND INFORMATION
----------------------------------------------------
SCHWAB PARTICIPANT
1000 OTHER NOTES
FUND FUNDS RECEIVABLE OTHER TOTAL
---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income -- 7,495 -- -- 27,781
Dividend income 10,045 3,115 -- 573 185,900
Gains (losses) on sale of investments 18,856 284 -- -- 55,020
Net appreciation/depreciation in fair
market value of investments 210,259 (6,308) -- -- 1,001,548
Contributions - participant 316,727 146,430 -- (29,845) 1,907,546
Contributions - other 234,646 44,281 -- (56,564) 1,089,550
Interest on loans receivable from
participants 1,893 776 -- -- 17,468
Other income -- 610 -- -- 1,944
---------- ---------- ---------- ---------- ----------
Total additions 792,426 196,683 -- (85,836) 4,286,757
---------- ---------- ---------- ---------- ----------
Deductions from net assets attributable to:
Benefits paid to participants 11,925 32,436 -- -- 210,773
Trustee/recordkeeper fees 136 31 -- -- 1,911
---------- ---------- ---------- ---------- ----------
Total deductions 12,061 32,467 -- -- 212,684
---------- ---------- ---------- ---------- ----------
Other increases (decreases):
Loans to participants (18,130) (1,315) 140,656 -- --
Principal loan repayments 5,528 8,696 (83,637) -- --
Interfund transfers, net (43,061) (77,680) -- -- --
---------- ---------- ---------- ---------- ----------
Total other increases (decreases) (55,663) (70,299) 57,019 -- --
---------- ---------- ---------- ---------- ----------
Increase (decrease) in net assets
available for plan benefits 724,702 93,917 57,019 (85,836) 4,074,073
Net assets available for plan benefits:
Beginning of year 642,593 144,255 206,808 86,409 7,295,172
---------- ---------- ---------- ---------- ----------
End of year 1,367,295 238,172 263,827 573 11,369,245
========== ========== ========== ========== ==========
</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, 1997
<TABLE>
<CAPTION>
FUND INFORMATION
----------------------------------------------------------------------------------
CHARLES
SCHWAB & PERSONAL BARON FOUNDERS INVESCO IVY
CO., INC. CHOICE ASSETS GROWTH TOTAL INTERNATIONAL
CASH ACCOUNTS FUND FUND RETURN FUND
---------- ---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income $ -- 57 -- -- -- --
Dividend income -- -- -- 183,143 10,380 8,320
Gains on sale of investments -- -- 19,920 20,382 275 5,385
Net appreciation in fair market value
of investments -- 415,750 320,326 49,024 32,942 28,082
Contributions - participant -- 348,221 324,554 313,028 60,096 130,573
Contributions - other -- 287,259 180,141 113,107 55,397 127,230
Interest on loans receivable from
participants -- 3,346 2,477 2,481 416 1,218
---------- ---------- ---------- ---------- ---------- ----------
Total additions -- 1,054,633 847,418 681,165 159,506 300,808
---------- ---------- ---------- ---------- ---------- ----------
Deductions from net assets attributable
to benefits paid to participants -- 50,888 30,877 39,787 1,033 21,524
---------- ---------- ---------- ---------- ---------- ----------
Total deductions -- 50,888 30,877 39,787 1,033 21,524
---------- ---------- ---------- ---------- ---------- ----------
Other increases (decreases):
Loans to participants -- (33,009) (42,582) (46,359) (3,641) (15,433)
Principal loan repayments -- 19,872 13,933 13,796 2,490 7,089
Interfund transfers, net (1,564) 228,831 (84,331) (87,413) 12,982 (24,156)
---------- ---------- ---------- ---------- ---------- ----------
Total other increases (decreases) (1,564) 215,694 (112,980) (119,976) 11,831 (32,500)
---------- ---------- ---------- ---------- ---------- ----------
Increase (decrease) in net assets
available for plan benefits (1,564) 1,219,439 703,561 521,402 170,304 246,784
Net assets available for plan benefits:
Beginning of year 1,564 1,340,080 765,860 811,280 108,576 327,821
---------- ---------- ---------- ---------- ---------- ----------
End of year $ -- 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>
Additions to net assets attributed to:
Interest income -- -- -- -- 57
Dividend income 6,338 6,697 -- -- 214,878
Gains on sale of investments 10,753 37 -- -- 56,752
Net appreciation in fair market value
of investments 111,117 2,273 -- -- 959,514
Contributions - participant 152,961 29,516 -- 29,845 1,388,794
Contributions - other 80,222 32,812 -- 56,564 932,732
Interest on loans receivable from
participants 1,294 434 -- -- 11,666
---------- ---------- ---------- ---------- ----------
Total additions 362,685 71,769 -- 86,409 3,564,393
---------- ---------- ---------- ---------- ----------
Deductions from net assets attributable
to benefits paid to participants 2,922 1,693 -- -- 148,724
---------- ---------- ---------- ---------- ----------
Total deductions 2,922 1,693 -- -- 148,724
---------- ---------- ---------- ---------- ----------
Other increases (decreases):
Loans to participants (18,940) (9,655) 169,619 -- --
Principal loan repayments 7,418 2,346 (66,944) -- --
Interfund transfers, net (23,799) (20,550) -- -- --
---------- ---------- ---------- ---------- ----------
Total other increases (decreases) (35,321) (27,859) 102,675 -- --
---------- ---------- ---------- ---------- ----------
Increase (decrease) in net assets
available for plan benefits 324,442 42,217 102,675 86,409 3,415,669
Net assets available for plan benefits:
Beginning of year 318,151 102,038 104,133 -- 3,879,503
---------- ---------- ---------- ---------- ----------
End of year 642,593 144,255 206,808 86,409 7,295,172
========== ========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 8
DIAMOND TECHNOLOGY PARTNERS
INCOPRORATED 401(k) PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(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 by letter dated and effective
October 1, 1998.
(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 362 and 204 at December
31, 1998 and 1997, 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 Plan'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 $5,000, 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 $5,000, 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.
6 (Continued)
<PAGE> 9
DIAMOND TECHNOLOGY PARTNERS
INCOPRORATED 401(k) PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(f) ADMINISTRATIVE EXPENSES
Administrative expenses amounting to $17,470 and $17,427 in 1998 and
1997, 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.
(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 10.5%. 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. Purchases and sales of securities are recorded on a
trade-date basis. Realized gains and losses from security
transactions are reported on the average cost method. 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.
7 (Continued)
<PAGE> 10
DIAMOND TECHNOLOGY PARTNERS
INCOPRORATED 401(k) PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(3) INVESTMENTS
Investments were as follows at December 31, 1998 and 1997:
<TABLE>
<CAPTION>
DECEMBER 31,
NUMBER OF SHARES -----------------------------
OR PRINCIPAL AMOUNT 1998 1997
------------------------------------ ------------- ---------
<S> <C> <C> <C>
Investments at fair value:
Baron Assets Fund 40,614 and 30,297, respectively $ 2,052,647 1,469,421
Founders Growth Fund 106,826 and 77,123, respectively 2,180,311 1,332,682
Ivy International Fund 20,756 and 14,722, respectively 855,143 574,605
Schwab 1000 Fund 40,803 and 24,194, respectively 1,367,295 642,593
Invesco Total Return Fund 12,437 and 9,587, respectively 390,017 278,880
Strong Government
Securities Fund 14,125 and 9,400, respectively 151,987 101,054
Schwab Money Market Fund 86,185 and 43,201, respectively 86,185 43,201
Personal Choice mutual funds 25,058 and 16,898, respectively 582,716 372,940
Personal Choice stocks 134,180 and 97,381, respectively 2,692,545 1,966,966
Personal Choice bonds 1,000 and 1,200, respectively 998 2,903
Personal Choice money market 743,667 and 216,710, respectively 743,667 216,710
Participant notes Secured by participant's vested
receivable account balances; fixed interest
rates ranging from 7.25% to 10.5% 263,827 206,808
------------- ---------
$ 11,367,338 7,208,763
------------- ---------
</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, 1998 and 1997 are as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------------------
DESCRIPTION 1998 1997
--------------------------------- ------------- ---------
<S> <C> <C>
Baron Asset Fund $ 2,052,647 1,469,421
Founders Growth Fund 2,180,311 1,332,682
Ivy International Fund 855,143 574,605
Schwab 1000 Fund 1,367,295 642,593
Personal Choice money market 743,667 --
Diamond Technology Partners CIA** 759,836 491,800
Safeguard Scientifics, Inc.** 503,423 627,626
</TABLE>
**Represents a party-in-interest
8 (Continued)
<PAGE> 11
DIAMOND TECHNOLOGY PARTNERS
INCOPRORATED 401(k) PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(5) DISTRIBUTIONS DUE TO PARTICIPANTS
As of December 31, 1998 and 1997, there were $42,655 and no distributions,
respectively, 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.
(8) PLAN AMENDMENT
Effective January 1, 1998, the Plan was amended as a result of the change
in recordkeeper from Small Parker Blossom to Charles Schwab. The Plan was
subsequently amended effective October 1, 1998 to modify the number of
participant loans an individual may have outstanding at a time.
9
<PAGE> 12
SCHEDULE 1
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<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 86,185 $ 86,185 86,185
--------- --------------- ---------
Total money market funds 86,185 86,185 86,185
--------- --------------- ---------
Domestic equity funds:
Baron Assets Fund 40,614 1,953,000 2,052,647
Founders Growth Fund 106,826 1,916,620 2,180,311
Investco Total Return Fund 12,437 368,450 390,017
Schwab 1000 40,803 1,144,590 1,367,295
--------- --------------- ---------
Total domestic equity funds 200,680 5,382,660 5,990,270
--------- --------------- ---------
International equity funds:
Ivy International Fund 20,756 825,011 855,143
--------- --------------- ---------
Total international equity funds 20,756 825,011 855,143
--------- --------------- ---------
Fixed income funds:
Strong Government Securities Fund 14,125 152,911 151,987
--------- --------------- ---------
Total fixed income funds 14,125 152,911 151,987
--------- --------------- ---------
Personal choice account mutual funds:
Amcent Equity Growth 2,394 * 54,377
Amcent Income & Growth 249 * 7,288
Baron Asset Fund 136 * 6,898
Berger New Generation Fund 365 * 5,886
Berger Select Fund 448 * 7,284
California S&P Midcap Index 608 * 11,274
California S&P Smallcap Index 823 * 9,504
Cohen & Steers Realty Shares 767 * 29,119
Dreyfus Emerging Leaders 84 * 2,225
Dreyfus Midcap Index Fund 328 * 7,726
Dreyfus Strategic Govt's Income, Inc 105 * 956
Fidelity Equity Income II 995 * 29,875
Fidelity Select Air Transn 162 * 4,106
</TABLE>
10 (Continued)
<PAGE> 13
SCHEDULE 1 CONT.
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<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>
Personal choice account mutual funds (cont.):
Invesco International European Fund 372 $ * 6,644
Invesco Small Company Value Fund 293 * 3,040
Invesco Strategic Financial Services 410 * 11,950
Janus Growth & Income 433 * 12,610
Janus Overseas Fund 250 * 5,016
Janus Twenty Fund 222 * 11,847
Janus Worldwide Fund 116 * 5,485
Kaufmann Fund, Inc. 806 * 4,576
Marisco Focus Fund 223 * 3,375
Merger Fund 301 * 4,093
Montgomery Emerging Markets 169 * 1,347
Montgomery Growth Fund 361 * 7,451
Oak Value Fund 235 * 6,411
Oakmark Fund 68 * 2,430
Oakmark Select Fund 889 * 17,362
Oakmark Smallcap Fund 149 * 2,205
Oberweis Emerging Growth 112 * 2,650
PBHG Large Cap 20 Fund 350 * 7,585
Royce Micro Cap Fund 2,015 * 17,230
Schwab Invts L-T U.S. Gov't 295 * 3,003
Schwab S&P 500 Inv Shs 2,450 * 46,450
Scudder Greater Europe 185 * 4,908
Scudder International Fund 738 * 35,963
Scudder New Europe Fund 235 * 4,142
Strong Opportunity Fund 175 * 6,741
Strong Total Return Fund 1,592 * 54,876
Templeton China World Fd 210 * 1,247
Transamerica Premier Aggr. Growth Fd 549 * 12,315
Vanguard Index Trust Growth Fund 2,936 * 92,996
Vanguard Index Trust Value Portfolio 455 * 10,250
---------- ------- ---------
Total personal choice account mutual funds 25,058 * 582,716
---------- ------- ---------
</TABLE>
11 (Continued)
<PAGE> 14
SCHEDULE 1 CONT.
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<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>
Personal choice account common and preferred stocks:
AT&T Corporation 257 $ * 19,433
Advanced Micro Devices, Inc. 30 * 870
Aegis Communications Group 200 * 163
America Online Delaware 140 * 21,718
American Technology Corp. 860 * 3,655
Ameritech Corp. New 135 * 8,560
Ameritrade Holding Cp 100 * 3,150
Answerthink Consulting Group 1,100 * 29,563
Apple Computer, Inc. 1,000 * 40,938
Arterial Vascular Engineer, Inc. 200 * 10,500
Ascend Communications 40 * 2,630
Ashworth 500 * 2,766
Bank One Corp 337 * 17,208
Berkshire Hathaway, Inc. 1 * 2,350
Boeing Co. 200 * 6,525
Boston Scientific Corp. 150 * 4,022
Cabletron Systems, Inc. 65 * 544
Callaway Golf Co. 600 * 6,150
Cambridge Technology Partners 650 * 14,381
Cannondale Corp. 200 * 1,800
Capital One Financial Corp. 200 * 23,000
Carleton Corp. 500 * 594
Carnegie International Corp. 1,000 * 2,310
Carreker-Antinori Inc. 2,500 * 16,719
Caterpillar, Inc. 110 * 5,060
Celestial Seasonings, Inc. 70 * 1,947
Cephalon, Inc. 300 * 2,700
Cerner Corporation 2,446 * 65,431
Charles Schwab Corporation 1,905 * 107,037
Checkfree Corp. 935 * 21,856
Chevron Corp. 80 * 6,635
Chromavision Med Sys Inc. 2,780 * 13,900
Cisco Sys Inc. 225 * 20,883
Coca-Cola Company 200 * 13,400
Commerce Bank, Harrisburg, PA 350 * 9,888
</TABLE>
12 (Continued)
<PAGE> 15
SCHEDULE 1 CONT.
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<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>
Personal choice account common and preferred stocks (cont.):
Compaq Computer Corp. 100 $ * 4,200
Computer Associates Intl, Inc. 200 * 8,525
Coram Healthcare Corp. 1,500 * 2,813
Cyberguard Corporation 200 * 419
Dell Computer Corporation 500 * 36,594
Deswell Inds, Inc. 350 * 3,588
Detour Magazine, Inc. 500 * 203
Diamond Multimedia Systems, Inc. 1,572 * 10,022
Diamond Technology Partners ** 39,730 * 759,836
Docucorp Intl, Inc. 4,004 * 24,274
Doubleclick, Inc. 300 * 13,350
Du Pont E I De Nemours 150 * 7,959
EMC Corp. Massachusetts 200 * 17,000
E Trade Group Inc. 700 * 32,747
Echostar Communications 150 * 7,256
Excelsior-Henderson Motorcycle 100 * 925
Excite, Inc. 400 * 16,825
Extended Stay America 500 * 5,250
Exxon Corp 100 * 7,313
Filenet Corp. 300 * 3,441
First Data Corp 100 * 3,188
Gateway 2000 300 * 15,356
Genesis Microchip Inc. 200 * 4,850
Gillette Co. 200 * 9,563
Globix Corp. 900 * 9,000
Grainger WW, Inc. 101 * 4,192
Hadco Corp. 100 * 3,500
Hanover Direct Inc. 200 * 688
Headway Corporate Resources Inc. 1,000 * 6,125
Heartport Inc. 6,950 * 40,831
Hewlett Packard Co. 152 * 10,354
Hutchinson Whampoa Ltd 50 * 1,767
Hyperion Telecommunication Inccl 600 * 9,075
I-Flow Corp. 600 * 731
I-Stat Corp 100 * 750
Illinois Tool Works, Inc. 200 * 11,629
Infinity Broadcasting 250 * 6,844
Informix Corp 660 * 6,518
</TABLE>
13
<PAGE> 16
SCHEDULE 1 CONT.
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<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>
Personal choice account common and preferred stocks (cont.):
Infoseek Corp. 200 $ * 9,875
Intel Corp. 250 * 29,648
Intermedia Communications, Inc 25 * 431
Intuit 100 * 7,250
I2 Technologies, Inc. 86 * 2,612
Johnson & Johnson 30 * 2,516
Logility Inc. 1,500 * 5,250
Loral Space & Communications 600 * 10,688
Lucent Technologies 403 * 44,261
Lycos, Inc 100 * 5,556
Marvel Enter Plan WT 5 * --
Marvel Enter WT W I 3 * --
Marvel Enter Wts CL B 2 * --
Marvel Enterprises, Inc. 200 * 1,238
Marvel Entertainment Group 100 * 15
McDonalds Corp 1 * 50
Medpartners, Inc. 1,005 * 5,276
Metzler Group, Inc. 150 * 7,303
Microsoft Corp. 705 * 97,775
Midwest Express Holdings 225 * 5,920
Minnesota Mining & Manufacturing 60 * 4,268
Miravant Medical Technologies 450 * 5,794
MMI Companies, Inc. 200 * 3,350
Modis Professional Services 835 * 12,212
Motorola 42 * 2,535
National Registry Inc. New 387 * 411
NCR Corp New 4 * 167
Netspeak Corp. 200 * 2,250
Nextlink Communications Inccl 50 * 1,419
Nike Inc 100 * 4,056
Novacare Inc. 100 * 275
OAO Technology Solutions, Inc. 2,501 * 7,503
Oracle Systems Corp. 500 * 21,563
Oxford Health Plans Inc. 480 * 7,140
Pairgain Technologies 200 * 1,538
Peapod, Inc. 364 * 2,480
Peoplesoft, Inc. 578 * 10,946
Petsmart, Inc. 500 * 5,500
</TABLE>
14 (Continued)
<PAGE> 17
SCHEDULE 1 CONT.
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<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>
Personal choice account common and preferred stocks (cont.):
Pfizer 250 * 31,250
Philip Morris Companies 146 * 7,811
Platinum Technology 300 * 5,738
Pride International, Inc. 400 * 2,825
Primax Solutions, Inc. 150 * 281
Procter & Gamble Co. 50 * 4,580
Profit Recovery Group Intl 80 * 2,995
Psinet, Inc. 100 * 2,088
PYR Energy Corp. 3,200 * 10,400
Qualcomm 60 * 3,109
Qwest Communs Intl Inc. 70 * 3,500
Raytheon Co New CL A 2 * 105
Reynolds & Reynolds Co 100 * 2,294
Safeguard Scientific Inc ** 18,348 * 503,410
Sanchez Computer 306 * 8,951
Sears Roebuck & Co. 50 * 2,125
Seventh Level Inc 2,000 * 5,313
Shiva Corporation 200 * 1,131
Siebel Systems, Inc. 364 * 12,353
Sigcorp, Inc. 161 * 5,755
Sprint Corp. 151 * 12,743
Sprint PCS Group 75 * 1,734
Sterling Commerce 100 * 4,500
System Software Associates, Inc 2,000 * 14,063
TCSI Corp 3,095 * 6,480
Technology Solutions Co. 600 * 6,431
Tellabs, Inc. 516 * 35,378
Tera Computer Co. 100 * 625
UAL Corp 40 * 2,388
US Data Corp 2,000 * 3,750
Wal Mart Stores Inc. 100 * 8,144
Walt Disney Holding Co 800 * 24,000
YPF Sociedad Anonima 300 * 8,381
3Com Corp 40 * 1,793
3DFX Interactive Inc 100 * 1,263
--------- -------- ---------
Total personal choice account
common and preferred stocks 134,180 * 2,692,545
--------- -------- ---------
</TABLE>
15 (Continued)
<PAGE> 18
SCHEDULE 1 CONT.
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<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>
Personal choice account bond:
U.S. Treasury Strip 0% 1,000 $ * 998
--------------- ------------- -----------
Total personal choice account bond 1,000 * 998
--------------- ------------- -----------
Personal choice account money market funds:
Schwab Money Market Fund 743,667 743,667 743,667
--------------- ------------- -----------
Total personal choice account
money market funds 743,667 743,667 743,667
--------------- ------------- -----------
Total personal choice account investments 903,905 * 4,019,926
--------------- ------------- -----------
Interest rates
ranging from
Participant notes receivable 7.25% to 10.5% 263,826 263,827
Cash and cash equivalents 1,334 1,334 1,334
--------------- ------------- -----------
* 11,368,672
============= ===========
</TABLE>
* Information not available
** Represents a party-in-interest
See accompanying independent auditors' report
16
<PAGE> 19
SCHEDULE 2
DIAMOND TECHNOLOGY PARTNERS
INCORPORATED 401(k) PLAN
Line 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, 1998
<TABLE>
<CAPTION>
IDENTITY OF PARTY NUMBER OF PURCHASE SELLING
INVOLVED DESCRIPTION OF ASSET TRANSACTIONS PRICE PRICE
- --------------------- ------------------------------------------ --------------- ------------- -------------
<S> <C> <C> <C> <C>
Charles Schwab & Baron Asset - domestic
Co., Inc. equity fund 44 $ 785,880 --
47 -- 292,659
Charles Schwab & Founders Growth - domestic
Co., Inc. equity fund 50 744,053 --
40 -- 171,155
Charles Schwab & Schwab 1000 - domestic
Co., Inc. equity fund 62 670,465 --
26 -- 174,878
Charles Schwab & Schwab Value
Co., Inc. Advantage money fund 4 258,291 --
2 -- 113,416
Charles Schwab &
Co., Inc. Schwab Money Market Fund 1,301 1,819,403 --
221 -- 1,220,612
<CAPTION>
IDENTITY OF PARTY COST OF NET GAIN
INVOLVED ASSETS (LOSS)
- --------------------- ----------- ------------
<C> <C> <C>
Charles Schwab &
Co., Inc. 785,880 --
301,264 (8,605)
Charles Schwab &
Co., Inc. 744,053 --
159,454 11,701
Charles Schwab &
Co., Inc. 670,465 --
168,467 6,411
Charles Schwab &
Co., Inc. 258,291 --
113,416 --
Charles Schwab &
Co., Inc. 1,819,403 --
1,220,612 --
</TABLE>
See accompanying independent auditors' report.
17
<PAGE> 20
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 June 28, 1999.
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 June 18, 1999, relating to the statements of
net assets available for plan benefits of Diamond Technology Partners
Incorporated 401(k) Plan as of December 31, 1998, and 1997, and the related
statements of changes in net assets available for plan benefits for the years
ended December 31, 1998 and 1997, which report appears in the December 31, 1998
report on Form 11-K of Diamond Technology Partners Incorporated 401(k) Plan.
KPMG LLP
Chicago, Illinois
June 28, 1999
|
|