1
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, 1998
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
2
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
years ended September 30, 1998 and 1997 are presented on pages 1 through
15.
Exhibits:
23. Consent of Ernst & Young LLP, independent auditors
3
Financial Statements
and Supplemental Schedules
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Years ended September 30, 1998 and 1997
with Report of Independent Auditors
4
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Financial Statements
and Supplemental Schedules
Years ended September 30, 1998 and 1997
CONTENTS
Report of Independent Auditors....................................... 1
Financial Statements
Statements of Net Assets Available for Plan Benefits
With Fund Information............................................. 2
Statements of Changes in Net Assets Available for
Plan Benefits With Fund Information............................... 4
Notes to Financial Statements........................................ 6
Supplemental Schedules
Line 27a - Schedule of Assets Held for Investment Purposes........... 12
Line 27d - Schedule of Reportable Transactions....................... 15
5
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, 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 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, 1998 and 1997, 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 basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of September 30, 1998 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.
St. Louis, Missouri Ernst & Young LLP
December 10, 1998
1
6
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statements of Net Assets Available for Plan Benefits With Fund Information
September 30, 1998
LARGE SMALL
GUARANTEED CAPITAL CAPITAL BASIC
INCOME BALANCED GROWTH GROWTH VALUE
FUND FUND FUND FUND FUND
------------------------------------------------------------------------
ASSETS
Investments at fair value:
Money market funds $ 3,689 $ 61,258 $ 62,691 $ 6,667 $ 4,054
U.S. Treasury bills and notes - 345,497 - - -
Mutual funds 429,756 - - 376,019 299,719
Common stocks - 842,972 1,153,806 - -
Participant notes receivable - - - - -
------------------------------------------------------------------------
433,445 1,249,727 1,216,497 382,686 303,773
Receivables:
Employer's contribution 10,383 36,429 28,361 19,063 11,538
Participants' contribution 1,695 3,797 4,305 3,243 1,934
Interfund receivables/payables 148,152 (80,562) (61,946) 12,891 (5,546)
------------------------------------------------------------------------
160,230 (40,336) (29,280) 35,197 7,926
------------------------------------------------------------------------
Net assets available for plan
benefits $593,675 $1,209,391 $1,187,217 $417,883 $311,699
========================================================================
INTERNATIONAL
EQUITY DRA STOCK INCOME
FUND FUND FUND LOANS TOTAL
------------------------------------------------------------------------
ASSETS Investments at fair value:
Money market funds $ 2,508 $ 1,434 $ 615 $ - $ 142,916
U.S. Treasury bills and notes - - - - 345,497
Mutual funds 167,510 - 38,131 - 1,311,135
Common stocks - 55,323 - - 2,052,101
Participant notes receivable - - - 30,194 30,194
------------------------------------------------------------------------
170,018 56,757 38,746 30,194 3,881,843
Receivables:
Employer's contribution 9,046 796 1,855 - 117,471
Participants' contribution 1,177 453 232 - 16,836
Interfund receivables/payables (14,233) (51) 1,295 - -
------------------------------------------------------------------------
(4,010) 1,198 3,382 - 134,307
========================================================================
Net assets available for plan
benefits $166,008 $57,955 $42,128 $30,194 $4,016,150
========================================================================
See accompanying notes.
2
7
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statements of Net Assets Available for Plan Benefits
With Fund Information (continued)
September 30, 1997
LARGE SMALL
GUARANTEED CAPITAL CAPITAL BASIC
INCOME BALANCED GROWTH GROWTH VALUE
FUND FUND FUND FUND FUND
--------------------------------------------------------------------------
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
==========================================================================
INTERNATIONAL
EQUITY DRA STOCK INCOME
FUND FUND FUND LOANS TOTAL
--------------------------------------------------------------------------
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.
3
8
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statements of Changes in Net Assets Available for Plan Benefits
With Fund Information
Year ended September 30, 1998
LARGE SMALL
GUARANTEED CAPITAL CAPITAL BASIC
INCOME BALANCED GROWTH GROWTH VALUE
FUND FUND FUND FUND FUND
--------------------------------------------------------------------------
Additions:
Investment income $ 21,674 $ 30,708 $ 17,946 $ 108,342 $ 16,339
Net appreciation (depreciation)
in fair value of investments - 127,786 30,911 (159,218) (1,160)
Contributions:
Participants 39,449 118,338 130,718 75,477 53,911
Employer 12,939 45,275 31,925 25,246 13,545
--------------------------------------------------------------------------
52,388 163,613 162,643 100,723 67,456
--------------------------------------------------------------------------
74,062 322,107 211,500 49,847 82,635
Deductions:
Benefits paid to participants 64,954 44,481 145,669 21,677 27,770
Interfund transfers 288,796 (165,540) (115,173) 12,972 774
--------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 297,904 112,086 (49,342) 41,142 55,639
Net assets available for plan
benefits at beginning of year 295,771 1,097,305 1,236,559 376,741 256,060
--------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $593,675 $1,209,391 $1,187,217 $ 417,883 $311,699
==========================================================================
INTERNATIONAL
EQUITY DRA STOCK INCOME
FUND FUND FUND LOANS TOTAL
--------------------------------------------------------------------------
Additions:
Investment income $ 32,717 $ 625 $ 1,855 $ 2,056 $ 232,262
Net appreciation (depreciation)
in fair value of investments (86,055) (5,474) 645 - (92,565)
Contributions:
Participants 46,139 14,730 16,629 - 495,391
Employer 11,404 1,269 1,855 - 143,458
--------------------------------------------------------------------------
57,543 15,999 18,484 - 638,849
--------------------------------------------------------------------------
4,205 11,150 20,984 2,056 778,546
Deductions:
Benefits paid to participants 10,725 14,273 - - 329,549
Interfund transfers (13,972) (2,822) (7,380) 2,345 -
--------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits (20,492) (5,945) 13,604 4,401 448,997
Net assets available for plan
benefits at beginning of year 186,500 63,900 28,524 25,793 3,567,153
--------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $166,008 $57,955 $42,128 $30,194 $4,016,150
==========================================================================
See accompanying notes.
4
9
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Statements of Changes in Net Assets Available for Plan Benefits
With Fund Information (continued)
Year ended September 30, 1997
LARGE SMALL
GUARANTEED CAPITAL CAPITAL BASIC
INCOME BALANCED GROWTH GROWTH VALUE
FUND FUND FUND FUND FUND
--------------------------------------------------------------------------
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 benefits 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
==========================================================================
INTERNATIONAL
EQUITY DRA STOCK INCOME
FUND FUND FUND LOANS TOTAL
--------------------------------------------------------------------------
Additions:
Investment income $ 5,371 $ 496 $ 552 $ 1,318 $ 93,758
Net appreciation in fair value
of investments 13,033 263 482 - 520,516
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 benefits 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.
5
10
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements
September 30, 1998
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 1998 or 1997.
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.
6
11
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
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.
INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct employer and employee
contributions in 10 percent increments in any of the following eight 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 midsized 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.
7
12
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
INVESTMENT OPTIONS (CONTINUED)
- 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.
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. SUMMARY 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.
8
13
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
2. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
INVESTMENT VALUATION AND INCOME RECOGNITION (CONTINUED)
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.
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
1998 1997
---------------------------------------------
Fidelity Advisor Growth Opportunities Fund $ 299,719 $238,214
Merrill Lynch Retirement Preservation Trust 429,756 286,067
Nicholas Applegate Core Growth Fund 376,019 345,216
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.
9
14
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
5. INCOME 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.
6. WITHDRAWN PARTICIPANTS
Amounts allocated to participants who have elected to withdraw from the Plan but
have not yet been paid were $80,131 and $26,975 at September 30, 1998 and 1997,
respectively.
7. YEAR 2000 ISSUE (UNAUDITED)
The plan administrator has initiated formal communications with its significant
service providers (plan custodian and plan specialists) to determine the extent
to which the Plan's systems or operations are vulnerable to those parties'
failure to remediate their systems that could be impacted by the so-called Y2K
problem (the reliance in computer technologies on two digits rather than four
digits to represent the calendar year - e.g., "98" for "1998"). It is generally
believed that computer technologies that rely on two-digit dates, if not
corrected, may produce inaccurate or unpredictable results or system failures in
connection with the transition from 1999 to 2000, when dates will begin to have
a lower two-digit number than dates in the prior century.
In addition, the plan administrator has completed testing for its internal
systems that impact the processing of employee benefits and believes that the
internal systems are currently capable of accurately processing date data
related to the change from 1999 to 2000. The Plan's service providers have
indicated that they are presently taking steps to ensure that the Plan's systems
and operations will also be capable of accurately processing date data related
to that change.
10
15
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Notes to Financial Statements (continued)
8. EVENT (UNAUDITED) SUBSEQUENT TO THE DATE OF THE INDEPENDENT AUDITORS' REPORT
Effective January 1, 1999, the Company adopted a defined contribution 401(k)
plan that bears the same name as the Plan referred to herein and all of the
former Plan's assets were transferred into the new plan. All other provisions of
the new plan are substantially similar to that of the former Plan, except
Merrill Lynch Trust Company will become the new plan's trustee.
11
16
Supplemental Schedules
17
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Line 27a - Schedule of Assets Held for Investment Purposes
September 30, 1998
NUMBER OF
SHARES OR
DESCRIPTION UNITS COST MARKET
- --------------------------------------------------------------------------------------------------------------
Money Market Funds:
CMA Money Fund 139,348 $ 146,244 $ 142,916
--------------------------
146,244 142,916
U.S. Treasury Bills and Notes:
U.S. Treasury Note, interest at 6.375%,
matures on August 15, 2002 90,000 90,273 96,300
U.S. Treasury Note, interest at 6.250%,
matures on February 15, 2004 50,000 51,222 53,648
U.S. Treasury Note, interest at 6.500%,
matures on May 15, 2005 70,000 70,233 78,498
U.S. Treasury Note, interest at 6.875%,
matures on May 15, 2006 45,000 45,129 52,045
U.S. Treasury Note, interest at 5.500%,
matures on February 15, 2008 60,000 60,201 65,006
--------------------------
317,058 345,497
Mutual Funds:
Fidelity Advisor Growth Opportunities Fund 6,895 247,041 299,719
Merrill Lynch International Securities Trust 3,859 28,208 38,131
Merrill Lynch International Equity Fund 22,729 201,376 167,510
Merrill Lynch Retirement Preservation Trust 429,756 429,756 429,756
Nicholas Applegate Core Growth Fund 26,801 278,661 376,019
--------------------------
1,185,042 1,311,135
12
18
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Line 27a - Schedule of Assets Held for Investment
Purposes (continued)
NUMBER OF
SHARES OR
DESCRIPTION UNITS COST MARKET
- --------------------------------------------------------------------------------------------------------------
Common Stocks:
Abbott Labs 755 21,055 32,794
American Express Company 430 24,133 33,378
American International Group, Inc. 919 75,608 72,026
Automatic Data Processing 605 25,768 45,223
American Home Products 780 37,644 41,047
Best Foods 435 15,513 21,070
Carnival Corp. 1,210 16,312 38,492
Cendant 1,500 37,486 17,437
Cisco Systems, Inc. 540 13,401 33,378
Coca-Cola 1,028 64,969 59,238
Colgate Palmolive 950 31,956 63,250
Compaq Computer Corp. 800 28,017 25,300
Data Research Associates, Inc. 4,098 59,107 55,323
Dayton Hudson Corp. 590 24,225 21,092
Emerson Electric Co. 410 19,244 25,522
Federal Home Loan Mortgage 1,476 21,709 73,246
Federal National Mortgage Association 555 32,770 35,658
General Electric 1,090 37,038 86,722
Gillette Co. 1,932 49,960 73,899
Hewlett-Packard Co. 810 35,869 42,878
Home Depot, Inc. 1,280 29,892 50,560
Intel Corp. 1,035 55,929 88,750
Interpublic Group of Companies, Inc. 480 14,987 25,889
Johnson & Johnson 1,227 53,408 96,012
Lucent Technologies 330 24,642 22,852
MCI WorldCom 1,160 46,702 56,695
McDonald's Corp. 650 55,342 38,796
Medtronic Inc. 1,145 38,945 66,410
Merck & Co., Inc. 690 56,667 89,396
Microsoft 356 9,200 39,182
NationsBank Corp. 333 15,751 17,815
Norwest Corp. 687 24,295 24,732
Oracle 480 8,373 13,980
13
19
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Line 27a - Schedule of Assets Held for Investment Purposes (continued)
NUMBER OF
SHARES OR
DESCRIPTION UNITS COST MARKET
- --------------------------------------------------------------------------------------------------------------
Common Stocks (continued):
Pepsico Inc. 2,052 63,948 60,404
Pfizer, Inc. 960 40,581 101,519
Philip Morris, Inc. 1,280 45,304 59,200
Procter & Gamble 495 24,628 35,206
Royal Dutch Petroleum 292 11,526 13,906
Schering Plough Corp. 495 15,828 51,325
State Street Corp. 230 15,841 12,549
Tellabs Inc. 520 27,195 20,702
Texas Instruments 540 22,826 28,620
United Technologies 290 26,869 22,166
Wal-Mart Stores 257 17,416 14,050
Walgreen Co. 300 13,547 13,218
Walt Disney Company 2,055 41,460 52,144
Wells Fargo & Co. 110 24,889 39,050
------------------------
1,497,775 2,052,101
Participant Notes Receivable, Interest From 5% to 7% 30,194 30,194
------------------------
$3,176,313 $3,881,843
========================
14
20
Data Research Associates, Inc.
401(k) Profit Sharing Plan
Line 27d - Schedule of Reportable Transactions
Year ended September 30, 1998
PURCHASES 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 at the beginning of
the year
CMA Money Fund $1,434,279 315 $1,389,347 $1,389,347 141 $ -
Note 1: There were no category (i), (ii), or (iv) reportable transactions
during the year ended September 30, 1998.
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.
15
21
The Plan. Pursuant to the requirements of the Securities 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 the undersigned
hereunto duly authorized.
DATA RESEARCH ASSOCIATES, INC
401(k) PROFIT SHARING PLAN
03/31/99 /s/Michael J. Mellinger
------------------------------
Date Michael J. Mellinger, as sole trustee