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 December 31, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from _________ to ________ COMMISSION FILE NUMBER: 0-25540 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: STB SYSTEMS, INC. 401(k) SAVINGS PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: STB SYSTEMS, INC. 1651 NORTH GLENVILLE DRIVE RICHARDSON, TEXAS 75081 REQUIRED INFORMATION The following financial statements and forms are furnished with this Form 11-K Annual Report for the STB Systems, Inc. 401(k) Savings Plan (the "Plan"): 1. Report of Independent Accountants. 2. Statement of Net Assets Available for Plan Benefits as of December 31, 1997 and 1996. 3. Statement of Changes in Net Assets Available for Plan Benefits for the Year Ended December 31, 1997. 4. Notes to Financial Statements. 5. Statement of Net Assets Available for Plan Benefits with Fund Information at December 31, 1997. 6. Statement of Net Assets Available for Plan Benefits with Fund Information at December 31, 1996. 7. Statement of Changes in Net Assets Available for Plan Benefits with Fund Information for the Year Ended December 31, 1997. 8. Item 27a (Schedule of Assets Held for Investment Purposes at December 31, 1997) (Schedule 1). 9. Item 27d (Schedule of Reportable Transactions for the Year Ended December 31, 1997) (Schedule 2). Each of the statements set forth above has been prepared in accordance with the financial reporting requirements of the Employee Retirement Income Security Act of 1974, as amended. -1- EXHIBITS 23.1 Consent of PricewaterhouseCoopers LLP, Independent Accountants -2- STB SYSTEMS, INC. 401(k) SAVINGS PLAN FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 F-1 REPORT OF INDEPENDENT ACCOUNTANTS To the Participants and Administrator of the STB Systems, Inc. 401(k) Savings Plan In our opinion, the accompanying statements of net assets available for plan benefits and the related statement of changes in net assets available for plan benefits present fairly, in all material respects, the net assets available for plan benefits of the STB Systems, Inc. 401(k) Savings Plan at December 31, 1997 and 1996, and the changes in net assets available for plan benefits for the year ended December 31, 1997, in conformity with generally accepted accounting principles. 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 of these statements in accordance with generally accepted auditing standards which 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in Schedules I and II is presented for purposes of additional analysis and is not a required part of the basic financial statements but is additional information required by ERISA. The Fund Information in the statements of net assets available for benefits with fund information and the statement of changes in net assets available for benefits with fund information 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 benefits of each fund. Schedules I and II and the 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. /s/ Pricewaterhouse Coopers LLP - --------------------------------- Pricewaterhouse Coopers LLP Dallas, Texas July 10, 1998 F-2 STB SYSTEMS, INC 401(k) SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS - ---------------------------------------------------------------------------- December 31, ---------------------------------- 1997 1996 ---------------- ---------------- ASSETS Investments (Note 3) $ 2,357,944 $ 1,339,551 Participant notes receivable 30,446 22,647 Contributions receivable: Participants 63,795 26,085 Employer 16,240 4,042 ---------------- ---------------- Total contributions receivable 80,035 30,127 ---------------- ---------------- Net assets available for plan benefits $ 2,468,425 $ 1,392,325 ---------------- ---------------- ---------------- ---------------- The accompanying notes are an integral part of these financial statements. F-3 STB SYSTEMS, INC 401(k) SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS - -------------------------------------------------------------------------------- Year Ended December 31, 1997 ------------------- Additions to net assets: Participant contributions $ 701,123 Employer contributions 169,773 Investment income: Net realized and unrealized gains 235,124 Interest and dividend income 18,961 ------------------- Total investment income 254,085 Other (7,917) ------------------- Total additions 1,117,064 Deductions from net assets: Distributions paid to participants 40,964 ------------------- Net increase 1,076,100 ------------------- Net assets available for plan benefits: Beginning of year 1,392,325 ------------------- End of year $ 2,468,425 ------------------- ------------------- The accompanying notes are an integral part of these financial statements. F-4 STB SYSTEMS, INC 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 1. DESCRIPTION OF PLAN The following description of the STB Systems, Inc. 401(k) Savings Plan (the "Plan") provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. GENERAL The Plan, established in 1991, is a nondiscriminatory defined contribution plan for all employees of STB Systems, Inc. (the "Company") who have completed one month of credited service and elect to participate. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). It has been amended to incorporate legislative changes required by the various tax acts enacted since 1984. CONTRIBUTIONS Eligible employees may elect to make contributions to the Plan by means of compensation reductions of up to 15% of their compensation. Employees may allocate their contributions to investment options in 1% increments. Effective January 1, 1997 the Company increased the amount of contributions it matches from 25% to 50% of each dollar of employee tax deferred contributions up to a maximum of 4% of each employee's annual pay. PARTICIPANTS' ACCOUNTS Participants' accounts are credited with the participants' contributions and an allocation of (a) the Company's contribution and (b) Plan earnings. Allocations are based on participant earnings or account balances. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. VESTING OF CONTRIBUTIONS Participants' contributions to the Plan are 100% vested at all times. Employer contributions to the Plan are vested in accordance with a Plan document schedule based on the participant's length of service with the Company. The schedule provides for full vesting after five years of credited service. INVESTMENT OPTIONS Eligible participants have eleven investment options as detailed in the Statement of Net Assets Available for Plan Benefits with Fund Information. See Note 4 for discussion of the change in the Plan's trustee that occurred during 1997. The assets from a predecessor custodian remain with New England Company as custodian and are included in Plan assets. These assets are a prior fixed income option. No further contributions can be made to this investment option. Participants may change their investment options daily. F-5 STB SYSTEMS, INC 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- PAYMENT OF BENEFITS In the event of a participant's termination of employment, retirement, disability, or death, the participant or beneficiary may elect to receive an amount equal to the vested value of their account in either a lump-sum or periodic payments of substantially equal installments at least annually. PARTICIPANT NOTES RECEIVABLE Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of (a) or (b) below: (a) $50,000 reduced by the highest outstanding balance of loans during the one-year period ending on the day before the new loan is made; (b) The greater of (1) or (2) below: (1) One-half of the participant's vested account balance; (2) $10,000. All loans are required to be repaid within five years of the loan. The loans are secured by the balance in the participant's account and bear a reasonable rate of interest as determined by the Loan Administrator. Principal and interest are repaid through payroll deductions. The Principal Financial Group is the custodian of the Loan Account. FORFEITED ACCOUNTS At December 31, 1997 and 1996, forfeited nonvested accounts totaled $3,610 and $1,346, respectively. These funds were used to reduce future employer contributions. EXPENSES OF ADMINISTERING THE PLAN The Company pays expenses incurred in the administration of the Plan. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial statements of the Plan are prepared in accordance with generally accepted accounting principles. Assets are stated at market value; unrealized appreciation and depreciation of the assets are reflected in the asset balances. Gains or losses on investments are realized at the time of sale. F-6 STB SYSTEMS, INC 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- FEDERAL INCOME TAXES Management of the Company believes that the Plan is qualified under Section 401(a) of the Internal Revenue Code and therefore believes the trust is exempt from taxation under Section 501(a). The Internal Revenue Service granted a favorable letter of determination to the Plan in October, 1993. Generally, contributions to a qualified plan are deductible by the Company when made, earnings of the trust are tax exempt, and participants are not taxed on their benefits until withdrawn from the Plan. Management of the Company is unaware of any variations in the operations of the Plan from the terms of the Plan document as amended. The Plan has complied with the fidelity bonding requirements of ERISA. VALUATION OF SECURITIES Valuation of securities is based on the last recorded sales price at year-end, as reported by the principal security exchange on which the security is traded. Securities transactions are recorded on a trade-date basis. RECOGNITION OF INTEREST INCOME Interest is recognized on an accrual basis. DETERMINATION OF UNREALIZED GAIN OR LOSS ON INVESTMENTS Unrealized appreciation or depreciation in the fair value of investments held at year-end and gain or loss on sale of investments during the year are determined using the fair value at the beginning of the year or purchase price if acquired during the year. REPORTABLE TRANSACTIONS For the Plan year 1997, the reportable transactions as defined in Item 27d and Part V of Form 5500 are listed in Schedule II. 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 amounts reported in the financial statements. Actual results could differ from these estimates. PAYMENT OF BENEFITS Benefits are recorded when paid. F-7 STB SYSTEMS, INC 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- TERMINATION OF THE PLAN Although it has not expressed any intent to do so, the Employer has the right under the Plan to discontinue its contributions or to terminate the Plan at any time without any liability whatsoever for such discontinuance or termination. In the event of Plan termination, participants are entitled to 100 percent of their vested individual and Employer accounts. RECLASSIFICATIONS Certain reclassifications have been made to the amounts reported in the prior year in order to conform to current year presentation. 3. INVESTMENTS Prior to July 1, 1997, investments were maintained by Nationwide Life Insurance Company as custodian, except for certain assets from a predecessor custodian which are held by New England Company. Effective July 1, 1997, investments are maintained by The Principal Financial Group as custodian, except for certain assets from a predecessor custodian which are held by New England Company. The fair values of individual investments that represent five percent or more of the Plan's net assets available for benefits at December 31, 1997 and 1996 were as follows: 1997 1996 ---------------- -------------- Stock Index 500 Fund $ 276,104 Large Company Growth Fund 182,694 International Stock Fund 133,399 Stable Value Fund 276,428 Vanguard Prime Cap 284,871 Vanguard Windsor 183,908 Vanguard Asset Allocation 244,857 Company Common Stock 440,168 $ 146,891 Fidelity Magellan 470,899 Fidelity Puritan 298,370 Fixed Fund 120,443 Twentieth Century Growth 146,679 New England Guaranteed 97,865 4. CHANGE OF TRUSTEE AND RECORD-KEEPER Effective July 1, 1997, the Plan changed trustees from Southwest Guaranty Trust Company to Delaware Charter Guarantee & Trust Company. In addition, the Plan changed record-keepers from Cecil & Co. to The Principal Financial Group. F-8 STB SYSTEMS, INC 401(k) SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION AT DECEMBER 31, 1997 - -------------------------------------------------------------------------------- Bond & Stock Large Co. Small Co. Int'l Stable Total Mortgage Index 500 Growth Blend Stock Value Plan Fund Fund Fund Fund Fund Fund ------------ ----------- ----------- ----------- ------------ ------------ ----------- ASSETS Investments $2,357,944 $45,928 $276,104 $182,694 $114,830 $133,399 $276,428 Participant notes 30,446 - - - - - - receivable Contributions (repayments) receivable: Participants 63,795 1,877 8,279 6,522 6,155 4,115 3,072 Employer 16,240 461 2,019 1,238 1,499 998 868 ------------ ----------- ----------- ----------- ------------ ------------ ----------- Total contributions receivable 80,035 2,338 10,298 7,760 7,654 5,113 3,940 ------------ ----------- ----------- ----------- ------------ ------------ ----------- Net assets available for plan benefits $2,468,425 $48,266 $286,402 $190,454 $122,484 $138,512 $280,368 ------------ ----------- ----------- ----------- ------------ ------------ ----------- ------------ ----------- ----------- ----------- ------------ ------------ ----------- Vanguard Company New TRP New Vanguard Vanguard Asset Common England Loan Horizons Prime Cap Windsor Allocation Stock Guaranteed Account ----------- ------------ ----------- ----------- ----------- ------------- ----------- ASSETS Investments $73,399 $284,871 $183,908 $244,857 $440,168 $101,358 $ - Participant notes - - - - - - 30,446 receivable Contributions (repayments) receivable: Participants 3,680 10,661 6,263 6,509 8,954 - (2,292) Employer 698 2,325 1,289 1,563 3,282 - - ----------- ------------ ------------ ----------- ----------- ------------- ----------- Total contributions receivable 4,378 12,986 7,552 8,072 12,236 - (2,292) ----------- ------------ ------------ ----------- ----------- ------------- ----------- Net assets available for plan benefits $77,777 $297,857 $191,460 $252,929 $452,404 $101,358 $28,154 ----------- ------------ ------------ ----------- ----------- ------------- ----------- ----------- ------------ ------------ ----------- ----------- ------------- ----------- F-9 STB SYSTEMS, INC 401(k) SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION AT DECEMBER 31, 1996 - -------------------------------------------------------------------------------- Company Total Common Fidelity Fidelity Bond Fund Fixed Plan Stock Magellan Puritan of America Fund ------------ ----------- ------------ ------------ ------------ ---------- ASSETS Investments $1,339,551 $146,891 $470,899 $298,370 $53,205 $120,443 Participant notes receivable 22,647 - - - - - Contributions (repayments) receivable: Participants 26,085 701 9,936 7,381 1,138 3,552 Employer 4,042 143 1,347 1,092 187 588 ------------ ----------- ------------ ------------ ------------ ---------- Total contributions receivable 30,127 844 11,283 8,473 1,325 4,140 ------------ ----------- ------------ ------------ ------------ ---------- Net assets available for plan benefits $1,392,325 $147,735 $482,182 $306,843 $54,530 $124,583 ------------ ----------- ------------ ------------ ------------ ---------- ------------ ----------- ------------ ------------ ------------ ---------- Twentieth New Century England Money Loan Growth Guaranteed Market Account ---------- ------------- ---------- ----------- ASSETS Investments $146,679 $97,865 $5,199 $ - Participant notes receivable - - - 22,647 Contributions (repayments) receivable: Participants 4,241 - 419 (1,283) Employer 629 - 56 - ---------- ------------- ---------- ----------- Total contributions receivable 4,870 - 475 (1,283) ---------- ------------- ---------- ----------- Net assets available for plan benefits $151,549 $97,865 $5,674 $21,364 ---------- ------------- ---------- ----------- ---------- ------------- ---------- ----------- F-10 STB SYSTEMS, INC 401(k) SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1997 - -------------------------------------------------------------------------------- Company Twentieth Total Common Fidelity Fidelity Bond Fund Fixed Century Plan Stock Magellan Puritan of America Fund Growth ---------- ---------- --------- --------- ---------- --------- --------- Additions to net assets: Contributions by: Participants $ 701,123 $ 87,140 $ 88,619 $ 56,921 $ 12,734 $ 7,184 $ 49,032 STB Systems, Inc. 169,773 24,999 24,356 18,322 3,628 5,435 14,211 Net realized and unrealized gains (losses) 235,124 14,385 104,083 49,359 3,417 - 44,211 Interest and dividend income 18,961 - - - - 2,889 - Loan repayments - 1,373 2,575 1,504 130 772 1,131 Other (7,917) (1,059) (597) (511) (47) (59) (641) Interfund transfers - 65,539 (8,339) 8,339 - - - ---------- ---------- --------- --------- ---------- --------- --------- Total additions 1,117,064 192,377 210,697 133,934 19,862 16,221 107,944 ---------- ---------- --------- --------- ---------- --------- --------- Transfers (to) from other trustee - 112,910 (674,726) (431,564) (73,762) (137,205) (252,369) Deductions from net assets: Distributions paid to participants 40,964 618 11,891 7,178 630 3,354 5,666 Loans to participants - - 6,262 2,035 - 245 1,458 ---------- ---------- --------- --------- ---------- --------- --------- 40,964 618 18,153 9,213 630 3,599 7,124 ---------- ---------- --------- --------- ---------- --------- --------- Net increase (decrease) 1,076,100 304,669 (482,182) (306,843) (54,530) (124,583) (151,549) Net assets available for plan benefits: Beginning of year 1,392,325 147,735 482,182 306,843 54,530 124,583 151,549 ---------- ---------- --------- --------- ---------- --------- --------- End of year $2,468,425 $452,404 $ - $ - $ - $ - $ - ---------- ---------- --------- --------- ---------- --------- --------- ---------- ---------- --------- --------- ---------- --------- --------- New Bond & Stock Large Co. Small Co. England Money Loan Mortgage Index 500 Growth Blend Guaranteed Market Account Fund Fund Fund Fund ---------- --------- -------- -------- ---------- ----------- ---------- Additions to net assets: Contributions by: Participants $ - $ 11,802 $ - $ 9,934 $ 63,599 $ 41,437 $ 36,197 STB Systems, Inc. - 1,581 - 2,658 12,330 7,368 8,518 Net realized and unrealized gains (losses) - - - 1,624 14,451 14,507 (3,520) Interest and dividend income 4,255 323 1,841 - - - - Loan repayments - - (16,186) 184 1,040 1,118 1,102 Other (15) 1,855 - (292) (1,472) (1,038) (677) Interfund transfers - 2,472 - (622) 964 (1,413) (11,733) ---------- --------- -------- -------- ---------- ----------- ---------- Total additions 4,240 18,033 (14,345) 13,486 90,912 61,979 29,887 ---------- --------- -------- -------- ---------- ----------- ---------- Transfers (to) from other trustee - (23,400) - 35,852 198,278 134,917 92,867 Deductions from net assets: Distributions paid to participants 747 307 665 173 400 461 270 Loans to participants - - (21,800) 899 2,388 5,981 - ---------- --------- -------- -------- ---------- ----------- ---------- 747 307 (21,135) 1,072 2,788 6,442 270 ---------- --------- -------- -------- ---------- ----------- ---------- Net increase (decrease) 3,493 (5,674) 6,790 48,266 286,402 190,454 122,484 Net assets available for plan benefits: Beginning of year 97,865 5,674 21,364 - - - - ---------- --------- -------- -------- ---------- ----------- ---------- End of year $101,358 $ - $ 28,154 $48,266 $286,402 $190,454 $122,484 ---------- --------- -------- -------- ---------- ----------- ---------- ---------- --------- -------- -------- ---------- ----------- ---------- Int'l Vanguard Stock Stable TRP NEW Vanguard Vanguard Asset Fund Value Horizons Prime Cap Windsor Allocation -------- -------- -------- --------- --------- ---------- Additions to net assets: Contributions by: Participants $ 31,187 $ 19,951 $21,206 $ 72,276 $ 40,578 $ 51,326 STB Systems, Inc. 5,997 5,451 4,063 14,059 7,418 9,379 Net realized and unrealized gains (losses) (1,801) 4,784 (2,773) (17,676) 5,095 4,978 Interest and dividend income - - - 1,394 2,576 5,683 Loan repayments 514 500 868 1,314 996 1,065 Other (865) (684) (181) (717) (402) (515) Interfund transfers (29,575) (303) (5,595) (17,809) (1,034) (891) -------- -------- -------- --------- --------- ---------- Total additions 5,457 29,699 17,588 52,841 55,227 71,025 -------- -------- -------- --------- --------- ---------- Transfers (to) from other trustee 133,222 256,597 60,852 247,544 136,827 183,160 Deductions from net assets: Distributions paid to participants 167 5,902 161 1,483 594 297 Loans to participants - 26 502 1,045 - 959 -------- -------- -------- --------- --------- ---------- 167 5,928 663 2,528 594 1,256 -------- -------- -------- --------- --------- ---------- Net increase (decrease) 138,512 280,368 77,777 297,857 191,460 252,929 Net assets available for plan benefits: Beginning of year - - - - - - -------- -------- -------- --------- --------- ---------- End of year $138,512 $280,368 $77,777 $297,857 $191,460 $252,929 -------- -------- -------- --------- --------- ---------- -------- -------- -------- --------- --------- ---------- F-11 SCHEDULE I STB SYSTEMS, INC 401(k) SAVINGS PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1997 - -------------------------------------------------------------------------------- Identity of issue, borrower, Description of investment including maturity date Current lessor or similar party rate of interest, collateral, par, or maturity value Cost value - -------------------------------- ------------------------------------------------------- ---------------- ---------------- The Principal Financial Group* Bond & Mortgage Mutual Fund $ 44,443 $ 45,928 The Principal Financial Group* Stock Index 500 Mutual Fund 262,147 276,104 The Principal Financial Group* Large Co. Growth Mutual Fund 168,809 182,694 The Principal Financial Group* Small Co. Blend Mutual Fund 117,997 114,830 The Principal Financial Group* International Stock Mutual Fund 135,062 133,399 The Principal Financial Group* Stable Value Mutual Fund 272,372 276,428 T. Rowe Price New Horizon Mutual Fund 77,673 73,399 Vanguard Primecap Mutual Fund 309,352 284,871 Vanguard Windsor Mutual Fund 191,542 183,908 Vanguard Asset Allocation Mutual Fund 250,989 244,857 STB Systems, Inc. * Common Stock 601,933 440,168 New England Guaranteed New England Guaranteed (5.85% guaranteed interest rate of maturities in 1998, 4.90% guaranteed interest rate for maturities in 1999) 99,768 101,358 Participant Loans General purpose loans, maturing from 2/98 to 8/00 bearing interest at 9.25% to 10.5% - 30,446 ---------------- ---------------- $2,532,087 $2,388,390 ---------------- ---------------- ---------------- ---------------- * Parties denoted are known to be parties-in-interest F-12 SCHEDULE II Page 1 of 2 STB SYSTEMS, INC 401(k) SAVINGS PLAN ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1997 - ------------------------------------------------------------------------------- (a) (b) (c) (d) (g) (h) (i) Current value of asset on Identity of Purchase Selling Cost of transaction Net party involved Description of asset price price asset date gain - --------------------------------- ---------------------------- ------------ ------------ ----------- -------------- -------- INDIVIDUAL TRANSACTIONS: The Principal Financial Group* Money Market $ 87,304 - $ 87,304 $ 87,304 - The Principal Financial Group* Money Market - $ 87,304 87,107 87,304 $ 197 The Principal Financial Group* Money Market 1,455,822 - 1,455,822 1,455,822 - The Principal Financial Group* Money Market 137,205 - 137,205 137,205 - The Principal Financial Group* Money Market - 1,593,027 1,589,356 1,593,027 3,671 The Principal Financial Group* Stock Index 500 Fund 198,278 - 198,278 198,278 - The Principal Financial Group* Large Co. Growth Fund 134,917 - 134,917 134,917 - The Principal Financial Group* Small Co. Blend Fund 92,867 - 92,867 92,867 - The Principal Financial Group* International Stock Fund 133,222 - 133,222 133,222 - The Principal Financial Group* Stable Value Fund 252,458 - 252,458 252,458 - The Principal Financial Group* Vanguard Prime Cap 247,544 - 247,544 247,544 - The Principal Financial Group* Vanguard Windsor 136,827 - 136,827 136,827 - The Principal Financial Group* Vanguard Asset Allocation 183,159 - 183,159 183,159 - The Principal Financial Group* Company Common Stock 284,227 - 284,227 284,227 - The Principal Financial Group* Company Common Stock 284,517 - 284,517 284,517 - The Principal Financial Group* Company Common Stock - 283,202 226,347 283,202 56,855 The Principal Financial Group* Company Common Stock 112,910 - 112,910 112,910 - Nationwide Life Insurance Co. Fidelity Magellan - 674,728 570,645 674,728 104,083 Nationwide Life Insurance Co. Fidelity Puritan - 431,562 382,204 431,562 49,358 Nationwide Life Insurance Co. Bond Fund of America - 73,760 70,344 73,760 3,416 Nationwide Life Insurance Co. Fixed Fund - 137,205 137,205 137,205 - Nationwide Life Insurance Co. Twentieth Century Growth - 252,370 208,159 252,370 44,211 F-13 SCHEDULE II Page 2 of 2 STB SYSTEMS, INC 401(k) SAVINGS PLAN ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1997 - -------------------------------------------------------------------------------- (a) (b) (c) (d) (g) (h) (i) Current value of asset on Identity of Purchase Selling Cost of transaction Net party involved Description of asset price price asset date gain - -------------------------------- ---------------------------- ----------- ----------- ---------- ----------- ------------ SERIES TRANSACTIONS: The Principal Financial Group* Money Market 1,684,479 - 1,684,479 1,684,479 - The Principal Financial Group* Money Market - 1,688,418 1,684,479 1,688,418 3,939 The Principal Financial Group* Stock Index 500 Fund 266,452 - 266,452 266,452 - The Principal Financial Group* Large Co. Growth Fund 177,452 - 177,479 177,479 - The Principal Financial Group* Small Co. Blend Fund 131,911 - 131,911 131,911 - The Principal Financial Group* International Stock Fund 166,753 - 166,753 166,753 - The Principal Financial Group* Stable Value Fund 280,159 - 280,159 280,159 - The Principal Financial Group* TRP New Horizons 84,968 - 84,968 84,968 - The Principal Financial Group* Vanguard Prime Cap 336,192 - 336,192 336,192 - The Principal Financial Group* Vanguard Windsor 195,153 - 195,153 195,153 - The Principal Financial Group* Vanguard Asset Allocation 253,652 - 253,652 253,652 - The Principal Financial Group* Company Common Stock 831,510 - 831,510 831,510 - The Principal Financial Group* Company Common Stock - 286,675 229,577 286,675 57,098 Nationwide Life Insurance Co. Fidelity Magellan 126,835 - 126,835 126,835 - Nationwide Life Insurance Co. Fidelity Magellan - 701,816 597,733 701,816 104,083 Nationwide Life Insurance Co. Fidelity Puritan 93,559 - 93,559 93,559 - Nationwide Life Insurance Co. Fidelity Puritan - 441,287 391,929 441,287 49,358 Nationwide Life Insurance Co. Bond Fund of America - 74,437 71,021 74,437 3,416 Nationwide Life Insurance Co. Fixed Fund - 142,068 142,068 142,068 - Nationwide Life Insurance Co. Twentieth Century Growth - 260,134 215,923 260,134 44,211 This supplemental schedule lists transactions in excess of 5% of the fair market values of the plan assets at the beginning of the year as required by the Department of Labor Rules and Regulations for Reporting and Disclosure. *Parties denoted are known to be parties-in-interest. Columns (e) Lease Rental and (f) Expense Incurred with Transactions are not applicable and, therefore, have been excluded. F-14 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees of the STB Systems 401(k) Savings Plan have duly caused this Annual Report to be signed on its behalf by the undersigned, hereunto duly authorized. STB SYSTEMS, INC. 401(k) SAVINGS PLAN By: STB Systems, Inc., Plan Sponsor Dated: July 14, 1998 By: /s/ Bryan F. Keyes --------------------------------- Printed Name: Bryan F. Keyes ----------------------- Title: Vice President of Administration and General Counsel ----------------------------- INDEX TO EXHIBITS Sequentially Exhibit Number Numbered Page - -------------- ------------- 23.1 Consent of PricewaterhouseCoopers LLP, Independent Accountants