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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K
(MARK ONE)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER 0-27030
INFINIUM SOFTWARE, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MASSACHUSETTS 04-2734036
(STATE OR OTHER JURISDICTION OF (IRS EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
25 COMMUNICATIONS WAY, HYANNIS, MA 02601
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (508) 778-2000
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NONE
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
COMMON STOCK, PAR VALUE $0.01
(TITLE OF CLASS)
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Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ].
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]
The aggregate market value of voting stock held by non-affiliates of the
registrant based upon the closing price of such stock as reported on the Nasdaq
National Market on December 15, 1999, was $68,257,111.
As of December 15, 1999, 12,606,745 shares of the registrant's Common Stock
were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Specifically identified information in the registrant's definitive proxy
statement for its Annual Meeting of Stockholders which is currently expected to
be held on February 11, 1999, to be filed pursuant to Regulation 14A is
incorporated by reference into Part III of this Form 10-K. Portions of the
registrant's 1999 Annual Report to Stockholders for the fiscal year ended
September 30, 1999 are incorporated by reference into Part II hereof.
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PART 1
ITEM 1. BUSINESS
All statements contained herein that are not historical facts, including
but not limited to, statements regarding anticipated future capital
requirements, the Company's future development plans, the Company's ability to
obtain debt, equity or other financing, and the Company's ability to generate
cash from operations, are based on current expectations. These statements are
forward looking in nature and involve a number of risks and uncertainties, as
more fully described under "Factors Affecting Future Performance", as more fully
described herein and under "Management's Discussion and Analysis of Financial
Condition and Results of Operations." Actual results may differ materially.
OVERVIEW
Infinium Software, Inc. (the Company or Infinium) develops, markets and
supports enterprise-level business software applications for organizations with
revenues generally in the range of $25 million to $5 billion. The Company's
software products automate the financial management, human resource management
and materials management functions of organizations in a broad range of
industries worldwide. The Company also offers a specialized manufacturing system
designed to manage process-manufacturing operations. The Company offers products
that are designed for IBM's AS/400 Computers and for Microsoft Windows NT
servers. In addition to different operating systems, the Company's products can
be deployed in a number of different networking environments including Local
Area Networks, Wide Area Networks, intranets and the Internet. Infinium recently
announced its plans to host its products for customers as an Applications
Service Provider (ASP). These ASP offerings will be designed to enable
Infinium's customers to quickly and easily access Infinium's business critical
applications over the Internet or through a dedicated connection without the
associated costs of owning, managing and supporting the applications and their
back-office infrastructure.
The Company's revenue is derived from two sources: software license fees
and service revenue. Software license fees include revenue from software license
agreements entered into between the Company and its customers with respect to
both the Company's products and third-party products marketed and/or distributed
by the Company. The Company's service revenue is comprised of software
maintenance fees and fees for consulting and training services.
The Company's more than 1,800 customers include Abbott Laboratories, Circus
Circus Enterprises, Coca-Cola Enterprises, Mirage Resorts, and MCA/Universal
Studios.
PRODUCTS
Infinium offers enterprise-level business software applications designed to
automate back-office operations of its customers. The Company's products can
function as stand-alone applications or as integrated suites of applications and
may be integrated with products from other vendors. The Company's products are
designed to provide users significant functionality as well as the flexibility
and ease of use of network centric computing, while retaining low cost of
ownership.
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AS/400 PRODUCT LINE
The AS/400 product suites and included applications currently offered by
Infinium are as follows:
FINANCIAL MANAGEMENT
General Ledger
Payables Ledger
Accounts Receivable
Fixed Assets
Currency Management
Global Taxation
Project Accounting
MATERIALS MANAGEMENT
Purchase Management
Inventory Control
Order Processing
HUMAN RESOURCES/PAYROLL
Payroll
Human Resources
Flexible Benefits
Training Administration
Occupational Health
PROCESS MANUFACTURING
Regulatory Management
Formula Management
Advanced Planning
Manufacturing Control
Laboratory Analysis
The Company's Financial Management and Human Resources/Payroll products
provide icon-based user access to the underlying accounting, statistical and
performance data through graphical "drag and drop" operations. The Company's
primary Financial Management applications are currently available in English,
French, German, Dutch and Spanish versions for multi-national and international
businesses. While the Company offers versions of its Human Resources systems for
use around the world, the Payroll system is localized and currently available
for use in the United States, Canada, United Kingdom, Australia, New Zealand,
Spain, Sweden, Indonesia, Malaysia, Philippines, and Thailand.
The Company's Materials Management products are targeted mainly to
non-manufacturing businesses, such as service organizations, hospitals, hotels,
transportation companies and utilities. These products integrate closely with
the Financial Management product line, and are often considered an extension of
the core financial applications. The Company's Process Manufacturing products
cover a full range of formula-based process manufacturing operations. These
products are fully integrated with the Company's Financial Management product
line.
The Company's eBusiness extensions allow Infinium customers to extend
application functionality to their employees, customers, partners and suppliers
through the Internet or their internal intranet. For example, employees are
provided with secure access to their personnel information via the
Internet/intranet. Infinium eBusiness extensions utilize IBM's Lotus Domino
technology, running on the AS/400 or other supported Domino platforms, to extend
the functionality of Infinium business to connect employees, customers, partners
and suppliers to manage relationships, lower transaction costs and optimize
business practices.
NT PRODUCT LINE
The Company offers a comprehensive human resources management system (HRMS)
developed for Microsoft's Windows NT operating system called Infinium Advantage
HRMS. This product suite includes two applications, a payroll and a human
resources information system. The Infinium Advantage Payroll system is designed
to easily manage the most complex payroll requirements, including job-based pay,
cash and non-cash compensation processing, multi-state taxing issues,
retroactive pay, and non-standard pay cycles. The payroll system features
user-defined, rules based processing capabilities, allowing users to customize
the system for their unique requirements without the need for custom programming
or IS department support. The Infinium Advantage HRMS system is designed to be a
proactive personnel, benefits and applicant management tool. In addition to
industry standard functionality, the human resources application incorporates
many innovative and useful features such as date sensitive changes, user defined
events, flagging, benefits administration and COBRA administration.
The Infinium Advantage HRMS and Payroll systems can be utilized either as
separate applications or as an integrated suite. The systems utilize Microsoft
SQL server database management systems.
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In September 1999, the Company decided to discontinue development of other
systems developed for the Microsoft Windows NT operating system, Infinium
Financials and Infinium Human Resources. The Company plans to provide
maintenance and consulting services for these products to existing customers
until November 2000.
APPLICATION SERVICE PROVIDER
In November 1999, Infinium announced plans to become an application service
provider (ASP) commencing in the first calendar quarter of 2000. The ASP
offering is designed to enable Infinium's customers to quickly and easily access
Infinium's business applications over the Web or via a direct connection,
without the associated costs of owning, managing and supporting the applications
and their computing infrastructure. Additionally, Infinium plans to provide
other value-added services, such as application consulting and customization, to
its customers via the Web.
CUSTOMER SUPPORT AND PRODUCT MAINTENANCE
The Company believes that providing a high level of support to its
customers is a critical requirement for customer satisfaction and the long-term
success of the Company. The Company believes that it has established a strong
history of responsiveness to customer requirements and a high level of support,
which has resulted in a loyal customer base. As of September 30, 1999, the
Company had 82 employees in its customer support operations.
The Company provides product updates and enhancements and customer support
services under an annual maintenance agreement offered to its customers. Initial
maintenance fees are based on a percentage of the list price of the licensed
software products. The renewal rate for annual maintenance agreements with
customers for the Company's products has been in excess of 90% for each of the
previous three fiscal years.
The Company's primary customer support center is located at the Company's
headquarters in Hyannis, Massachusetts. The Company also maintains support
operations in Bend, Oregon, and in its United Kingdom and Singapore offices,
servicing customers outside North America. In November 1999, Infinium announced
the acquisition of iTsoft. Located in Malaysia, iTsoft has been marketing and
supporting Infinium's software applications since 1995. This operation, now
known as Infinium Malaysia, will augment Infinium's customer support
capabilities in the Pacific Rim.
Infinium also supports its customers in markets where it does not have a
direct presence, such as Argentina and Thailand, through authorized
distributors.
In addition to telephone support, the Company also offers an electronic
support capability, called "Web Link," which is accessible over the Internet. It
allows customers to have 24 hour, 7 day per week access to product release
information, product bulletins and updates, and tip and technique information as
well as to pursue ordinary customer support dialogues.
CONSULTING AND EDUCATION SERVICES
Infinium's consulting services organization provides fee-based services,
including implementation assistance, project management, application extension
or customization, integration with existing customer applications and similar
services to the Company's customers. The Company also trains and certifies
third-party organizations, such as consulting firms and system integrators, to
complement the Company's own service operation. The Company has developed an
implementation methodology, called the ROI Methodology, designed for rapid
implementation of the Company's solutions. The objective of the methodology is
to provide a proven implementation roadmap, that together with the Company's
business know-how and expertise, facilitates a rapid implementation to
accelerate an organization's return on its software investment. The Company
believes that it is able to differentiate itself on the service level, the speed
of implementation and the quality of personnel that it provides to customers
during the implementation cycle. The Company had 146 employees in its consulting
services organization as of September 30, 1999.
The Company offers a comprehensive series of fee-based training courses to
its customers. Courses can be taken at the Company's headquarters in Hyannis,
Massachusetts, or at regional training centers in the
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Atlanta, Boston, Chicago, Los Angeles, Oregon, London and Toronto metropolitan
areas. Course offerings can also be delivered at a customer's site.
CUSTOMERS
The Company's products are used by more than 1,800 customers in a wide
range of industries. No single customer accounted for 10% or more of revenue in
fiscal years 1997, 1998 or 1999.
SALES AND MARKETING
The Company offers its products and services through direct sales and
business partner channels throughout the world.
Regional sales and consulting services offices are located in Atlanta,
Boston, Chicago, Los Angeles, Oregon, London, Toronto and Singapore. In
addition, the Company has authorized resellers that license Infinium
applications directly to customers. The Company also has a telesales operation
that markets training and consulting services to the Company's existing customer
base. The Company conducts comprehensive marketing programs that include
advertising, direct mail, telemarketing, seminars, public relations, trade shows
and customer relations. The Company's sales and marketing organizations
consisted of 160 employees as of September 30, 1999.
PRODUCT DEVELOPMENT
The Company devotes substantial resources to research and development in
order to enhance and maintain the competitiveness of its products. In addition
to product enhancements, the Company is currently developing a new user
interface designed to allow customers to access and utilize Infinium software
offerings over the Internet within popular Internet browsers.
The Company maintains multiple research and development operations, located
in the Hyannis, Massachusetts; Boston, Massachusetts; London, England; Bend,
Oregon; and Paris, France greater metropolitan areas. In addition, the Company
uses outsourcing relationships to supplement its internal development resources.
As of September 30, 1999, the Company had 131 employees in its research and
development operations, exclusive of contractors and consultants. The Company's
research and development spending was approximately $20.5 million, $24.2 million
and $24.9 million for the fiscal years ended September 30, 1997, 1998 and 1999,
respectively.
ALLIANCE PROGRAM
The Company has a comprehensive Alliance Program with more than 60
consulting, sales, software, and platform partners supporting the Company's
Human Resources and Financial product lines throughout the world. Through this
program, the Company seeks to expand its sales channels as well as technology,
interoperability and support. The Infinium Alliance Program consists of four
categories of partners: Consulting Alliance Partners, Sales Alliance Partners,
Software Alliance Partners, and Platform Alliance Partners. The Company is
actively seeking to expand its Alliance Program in every category. Alliance
members are supported with joint marketing and sales initiatives, trade show
opportunities, as well as technology development, training and integration
resources.
COMPETITION
The business applications software market is highly competitive and rapidly
changing. A number of companies offer products similar to the Company's products
and target the same customers as the Company. In addition, a number of companies
are planning to offer products over the Internet competitive to the Company's
products. The Company believes its ability to compete depends upon many factors
within and outside its control, including the timely development and
introduction of new products and product enhancements, product functionality,
performance, price, reliability, customer service and support, sales and
marketing efforts and product distribution. The Company believes that it
competes favorably on the basis of each of these factors.
The Company's primary competitors are presently J.D. Edwards & Company,
Lawson Software, and PeopleSoft. The Company believes, however, that competition
in its industry is undergoing rapid change and that the barriers to competition
between market segments that have previously existed are decreasing. Due to the
relatively low barriers to entry in the software market, the Company expects
additional competition from
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these and other emerging companies in the client/server business application
software market as well as from companies in the expanding Internet business
applications market the Company is entering. Many of the Company's existing and
potential competitors are substantially larger than the Company and have
significantly greater financial, technical and marketing resources and have
established extensive direct and indirect channels of distribution. As a result,
they may be able to respond more quickly to new or emerging technologies and
changes in customer requirements, or to devote greater resources to the
development, promotion and sale of their products than the Company. The Company
also expects that competition will increase as a result of software industry
consolidation. In addition, current and potential competitors have established
or may establish cooperative relationships among themselves or prospective
customers. Accordingly, it is possible that new competitors or alliances among
competitors may emerge and rapidly acquire significant market share. Increased
competition may result in price reductions, reduced gross margins and loss of
market share, any of which would have a material adverse effect on the Company's
business, results of operations and financial condition. There can be no
assurance that the Company will be able to compete successfully against current
or future competitors or that competitive pressure will not have a material
adverse effect on the Company's business, operating results and financial
condition.
INTELLECTUAL PROPERTY, PROPRIETARY RIGHTS AND LICENSES
The Company regards certain features of its internal operations, software
and documentation as confidential and proprietary, and relies on a combination
of contract, copyright, trademark and trade secret laws and other measures to
protect its proprietary intellectual property. The Company has no patents, and
existing copyright laws afford only limited protection. The Company believes
that, because of the rapid rate of technological change in the computer software
industry, trade secret and copyright protection are less significant than
factors such as the knowledge, ability and experience of the Company's
employees, frequent product enhancements and the timeliness and quality of
support services.
The Company provides its products to customers under non-exclusive,
nontransferable licenses. The Company generally licenses its products solely for
the customer's internal operations and only on designated computers. In certain
circumstances, the Company makes available enterprise-wide licenses. The Company
provides source code to its customers for certain of its products and has
escrowed its source code with a commercial bank for the benefit of all
customers. The provision of source code may increase the likelihood of
misappropriation or other misuse of the Company's intellectual property.
From time to time, the Company licenses software from third-parties for use
with its products. The Company believes that no such license agreement to which
it is presently a party is material and that if any such license agreement were
to terminate for any reason, the Company would be able to obtain a license or
otherwise acquire other comparable technology or software on terms that would
not be materially adverse to the Company.
EMPLOYEES
As of September 30, 1999, the Company had 608 full-time-equivalent
employees, including 160 in sales and marketing, 131 in product development, 228
in customer support and field services and 89 in administration. The Company's
success will depend in large part upon its ability to continue to attract and
retain qualified employees. None of the Company's employees is represented by a
labor union or is subject to a collective bargaining agreement. The Company
believes that its relations with its employees are good.
ITEM 2. PROPERTIES
The Company is headquartered in Hyannis, Massachusetts, where it leases an
aggregate of 65,000 square feet of space. Administrative, marketing, product
development and customer support operations are located in the Hyannis space.
The Company also leases 30,900 square feet of space in Lexington, Massachusetts
and 12,000 square feet of space in the London, England area, both of which are
shared for product development, marketing, sales and consulting services. The
Paris, France office is used for product development operations and contains 500
square feet. The Company leases 6,000 square feet in Chatham, England, which is
not currently being used by the Company and is being marketed for sublease to a
third party. In addition, the Company leases an aggregate of 46,700 square feet
predominately for use by field operations located in the Atlanta, Chicago,
Houston, Irvine, Toronto and Singapore areas. Office facilities and suites are
also being
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leased for field representatives throughout various locations in North America
aggregating 2,000 square feet. The Infinium Advantage Unit is located in Bend,
Oregon, in which the Company leases 12,300 square feet of space for support,
field operations, training, marketing, and administration for the Company's
Infinium Advantage product. The Company believes that its existing facilities
are adequate to meet current needs and that suitable additional space will be
available as needed to accommodate any further physical expansion of corporate
operations and for additional sales and service field offices.
ITEM 3. LEGAL PROCEEDINGS
From time to time, the Company is involved in litigation relating to claims
arising out of its operations in the normal course of business. The Company is
not a party to any legal proceedings, the adverse outcome of which, individually
or in the aggregate, would have a material adverse effect on the Company's
results of operations or financial position.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders of the Company
during the fourth quarter of the fiscal year ended September 30, 1999, through
the solicitation of proxies or otherwise.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
The information required by this item may be found in the section captioned
"Stock Information" appearing in the 1999 Annual Report to Stockholders, and is
incorporated herein by reference.
ITEM 6. SELECTED FINANCIAL DATA
The information required by this item may be found in the section captioned
"Selected Financial Data" appearing in the 1999 Annual Report to Stockholders,
and is incorporated herein by reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The information required by this item may be found in the section captioned
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" appearing in the 1999 Annual Report to Stockholders, and is
incorporated herein by reference.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information required by this item may be found in the section captioned
"Quantitative and Qualitative Disclosures About Market Risk" appearing in the
1999 Annual Report to Stockholders, and is incorporated herein by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information with respect to this item may be found in the 1999 Annual
Report to Stockholders, and is incorporated herein by reference and indexed by
reference under Item 14(a)(1) and (2) below.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
There have been no changes in or disagreements with accountants on
accounting or financial disclosure matters.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The information required by this item with respect to the directors of the
Company is hereby incorporated by reference from the information contained under
the heading "Election of Directors" in the Company's definitive proxy statement
of the Company's 1999 Annual Meeting of Stockholders which will be
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filed with the Securities and Exchange Commission within 120 days after the
close of the fiscal year (the "Definitive Proxy Statement").
Certain information concerning directors and executive officers is hereby
incorporated by reference to the information contained under the headings
"Occupations of Directors and Executive Officers" and "Section 16(a) Beneficial
Ownership Compliance" in the definitive Proxy Statement.
ITEM 11. EXECUTIVE COMPENSATION
The information required by this item is hereby incorporated by reference
to the information contained under the heading "Compensation and Other
Information Concerning Directors and Officers" in the Definitive Proxy
Statement.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The information required by this item is hereby incorporated by reference
to the information contained under the heading "Management and Principal Holders
of Voting Securities" in the Definitive Proxy Statement.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The information required by this item is hereby incorporated by reference
to the information contained under the heading "Certain Relationships and
Related Transactions" in the Definitive Proxy Statement.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a)(1) INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
The following Consolidated Financial Statements of the Company are included
in the Company's 1999 Annual Report to Stockholders and are incorporated herein
by reference pursuant to Item 8 hereof:
Report of Independent Accountants;
Consolidated balance sheet at September 30, 1998 and 1999;
Consolidated statement of operations for the years ended September 30,
1997, 1998 and 1999;
Consolidated statement of stockholders' equity for the years ended
September 30, 1997, 1998 and 1999;
Consolidated statement of cash flows for the years ended September 30,
1997, 1998 and 1999;
Notes to consolidated financial statements.
The Company's 1999 Annual Report to Stockholders is not to be deemed filed
as part of this report except for those parts thereof specifically incorporated
herein by reference.
(a)(2) INDEX TO FINANCIAL STATEMENT SCHEDULES
The following Financial Statement Schedules of the Company are filed as
part of this Report:
PAGE
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Schedule I Report of Independent Accountants on Financial
Statement Schedule........................................ S-1
Schedule II Valuation and Qualifying Accounts............... S-2
Schedules not listed above have been omitted because they are not
applicable, not required, or the information required to be set forth therein is
included in the consolidated financial statements or the notes thereto.
(a)(3) INDEX TO EXHIBITS
See attached Index to Exhibits on page X-1 of this 10-K.
(b) REPORTS ON FORM 8-K
No reports on Form 8-K have been filed during the last quarter of fiscal
1999.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, this 20th day of
December 1999.
INFINIUM SOFTWARE, INC.
By: /s/ DANIEL J. KOSSMANN
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Daniel J. Kossmann
Vice President and Chief Financial
Officer
We the undersigned officers and directors of Infinium Software, Inc.,
hereby severally constitute and appoint Robert A. Pemberton and Daniel J.
Kossmann, and each of them singly, our true and lawful attorneys, with full
power to them and each of them singly, to sign for us in our names in the
capacities to do all things in our names and on behalf in such capacities to
enable Infinium Software, Inc. to comply with the provisions of the Securities
Exchange Act of 1934, as amended, and all requirements of the Securities
Exchange Commission.
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
SIGNATURE TITLE DATE
--------- ----- ----
/s/ ROBERT A. PEMBERTON Chairman of the Board, December 20, 1999
- ------------------------------------------------ President, Chief Executive
Robert A. Pemberton Officer and Director
/s/ DANIEL J. KOSSMANN Chief Financial Officer, December 20, 1999
- ------------------------------------------------ (Principal Financial and
Daniel J. Kossmann Accounting Officer)
/s/ MANUEL CORREIA Director December 20, 1999
- ------------------------------------------------
Manuel Correia
/s/ ROLAND D. PAMPEL Director December 20, 1999
- ------------------------------------------------
Roland D. Pampel
/s/ ROBERT P. SCHECHTER Director December 20, 1999
- ------------------------------------------------
Robert P. Schechter
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SCHEDULE I
REPORT OF INDEPENDENT ACCOUNTANTS ON FINANCIAL STATEMENTS SCHEDULE
To the Board of Directors of
Infinium Software, Inc.:
Our audits of the consolidated financial statements referred to in our
report dated November 23, 1999 appearing in the Annual Report to Stockholders of
Infinium Software, Inc. (which report and consolidated financial statements are
incorporated by reference in this Annual Report on Form 10-K) also included an
audit of the financial statement schedule listed in Item 14(a)(2) of this Form
10-K. In our opinion, the financial statement schedule presents fairly, in all
material respects, the information set forth therein when read in conjunction
with the related consolidated financial statements.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 1999
S-1
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SCHEDULE II
INFINIUM SOFTWARE, INC.
VALUATION AND QUALIFYING ACCOUNTS
(IN THOUSANDS)
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COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
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CHARGED TO CHARGED TO
DESCRIPTION BEGINNING EXPENSE OTHER DEDUCTIONS OTHER ENDING
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FISCAL YEAR 1999
Allowance for Doubtful Accounts... $1,650 $2,679 $ -- $(100) $ -- $4,229
FISCAL YEAR 1998
Allowance for Doubtful Accounts... 1,569 977 -- (916) 20 1,650
FISCAL YEAR 1997
Allowance for Doubtful Accounts... 1,250 397 -- (243) 165 1,569
S-2
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INFINIUM SOFTWARE, INC.
INDEX TO EXHIBITS
ADDITIONAL CHANGES REQUIRED IN EXHIBIT LIST
EXHIBIT
NO. DESCRIPTION
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3.1 -- Articles of Organization of the Registrant, as amended.
3.2 -- By-Laws of the Registrant, as amended, are incorporated
herein by reference to Exhibit 3(I) to the Registrant's Form
10-Q for the quarterly period ended March 31, 1997.
4.1 -- Shareholder Rights Agreement dated as of February 5, 1999 is
incorporated herein by reference to Exhibit 1 to the
Registrant's Registration Statement on Form 8-A.
10.1* -- 1984 Incentive Stock Option Plan, as amended as of August
23, 1988 is incorporated herein by reference to Exhibit 10.1
to the Registrant's Registration Statement on Form S-1
(Registration No. 33-97866).
10.2* -- 1989 Stock Option Plan, as amended as of October 1, 1994 is
incorporated herein by reference to Exhibit 10.2 to the
Registrant's Registration Statement on Form S-1
(Registration No. 33-97866).
10.3* -- 1995 Stock Plan is incorporated herein by reference to
Exhibit 10.3 to the Registrant's Registration Statement on
Form S-1 (Registration No. 33-97866).
10.4* -- 1995 Employee Stock Purchase Plan is incorporated herein by
reference to Exhibit 10.4 to the Registrant's Registration
Statement on Form S-1 (Registration No. 33-97866).
10.5* -- 1995 Non-Employee Director Stock Option Plan is incorporated
herein by reference to Exhibit 10.5 to the Registrant's
Registration Statement on Form S-1 (Registration No.
33-97866).
10.6 -- Lease dated March 31, 1995 between the Registrant and
Independence Park Associates Realty Trust as of August 1995
is incorporated herein by reference to Exhibit 10.6 to the
Registrant's Registration Statement on Form S-1
(Registration No. 33-97866).
10.7* -- Form of Executive Compensation Plan is incorporated herein
by reference to Exhibit 10.9 to the Registrant's
Registration Statement on Form S-1 (Registration No.
33-97866).
10.8* -- Executive Severance Plan
10.9* -- Form of 1995 Stock Plan Option Agreement is incorporated
herein by reference to Exhibit 10.16 to the Registrant's
Registration Statement on Form S-1 (Registration No.
33-97866).
10.10* -- Register of Amendments, Subsections 3.1 and 7.3.4, 1989
Stock Option Plan is incorporated herein by reference to
Exhibit 10.17 to the Registrant's Registration Statement on
Form S-1 (Registration No. 33-97866).
10.11* -- Register of Amendments, Article 5, 1995 Employee Stock
Purchase Plan is incorporated herein by reference to Exhibit
10.18 to the Registrant's Registration Statement on Form S-1
(Registration No. 33-97866).
13.1 -- 1999 Annual Report to stockholders (which shall be deemed
filed only with respect to those portions specifically
incorporated by reference herein).
21.1 -- Schedule of Subsidiaries of the Registrant
23.1 -- Consent of PricewaterhouseCoopers LLP
27 -- Financial Data Schedule for the year ended September 30,
1999
27.1 -- Financial Data Schedule for the year ended September 30,
1998
27.2 -- Financial Data Schedule for the year ended September 30,
1997
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* Indicates a management contract or any compensatory plan, contract or
arrangement required to be filed as an exhibit to Item 14(c).
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