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Release Date: |
April 28, 2005
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Contacts: |
Peter J. Rogers, Jr.
Vice President, Investor Relations
443-285-8059
progers@micros.com
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MICROS REPORTS FISCAL 2005 THIRD QUARTER RESULTS:RECORD REVENUE, NET INCOME AND EPS;
REVENUE, NET INCOME AND EPS EXCEED EXPECTATIONS
Columbia, Maryland.... MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2005 third quarter ended March 31, 2005. Revenue for the quarter was $153.4 million, an increase of $32.4 million, or 26.8%, over the same period last year. Net income for the quarter was $14.2 million, an increase of $6.7 million, or 88.6%, over the year ago third quarter. Earnings per share, on a diluted basis, were $0.35, an increase of $0.16 per share, or 84.2%, over the year ago earnings of $0.19 per share. The quarterly revenue, net income and earnings per share are Company records. The earnings per share results reflect the February 2005 two-for-one stock split, effected in the form of a 100% stock dividend.
Revenue, net income and earnings per share results exceeded consensus expectations.
For the nine-month period ending March 31, 2005, MICROS's revenue was $425.2 million, an increase of $80.6 million, or 23.4%, over the same period in fiscal 2004. Net income for the nine-month period was $35.6 million, an increase of $14.8 million, or 70.8%, over the same period in fiscal 2004. Earnings per share, on a diluted basis, were $0.90, an increase of $0.36 per share, or 66.7%, over the earnings of $0.54 per share for the same period in fiscal 2004. The earnings per share results reflect the February 2005 two-for-one stock split, effected in the form of a 100% stock dividend.
Tom Giannopoulos, MICROS's Chairman and CEO, stated, "The record financial results reflect the strength of our products and services in our market segments: hotels, restaurants, and specialty retail. We look forward to a strong fourth quarter and another record year for revenue, net income and earnings per share."
MICROS's guidance for the fiscal 2005 fourth quarter ending June 30, 2005 has been increased to revenue between $155.0 million and $162.0 million and net income between $14.5 million and $16.5 million. MICROS's guidance for the fiscal 2005 year ending June 30, 2005, has been increased to revenue between $580.2 million and $587.2 million and net income between $50.0 million and $52.0 million.
Some of the statements contained herein are not based on historic facts but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in the release that are forward-looking statements include Mr. Giannopoulos's statements above and our statements about guidance for the fiscal 2005 fourth quarter and fiscal 2005 year ending June 30, 2005. These statements are based upon MICROS's current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Some of those risks and uncertainties are: product demand and market acceptance; adverse economic factors; impact of competitive products and pricing on margins; product development delays and technological difficulties; and aggressively controlling expenses. Other risks and uncertainties are indicated in the MICROS Annual Report on Form 10-K for the fiscal year ending June 30, 2004 and in other filings made by MICROS with the Securities and Exchange Commission. MICROS assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - in thousands, except per share amounts)
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Third Quarter Ended March 31, |
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Nine Months Ended March 31, |
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2005 |
2004 |
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2005 |
2004 |
| Revenue: |
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| Hardware |
$49,871 |
$35,811 |
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$131,804 |
$104,057 |
| Software |
28,762 |
21,509 |
|
75,183 |
58,273 |
| Service |
74,719 |
63,647 |
|
218,257 |
182,308 |
| Total revenue |
153,352 |
120,967 |
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425,244 |
344,638 |
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| Cost of sales: |
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| Hardware |
32,628 |
23,705 |
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88,220 |
72,162 |
| Software |
6,704 |
5,471 |
|
17,965 |
14,312 |
| Service |
36,226 |
29,665 |
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105,040 |
82,831 |
| Total cost of sales |
75,558 |
58,841 |
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211,225 |
169,305 |
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| Gross margin |
77,794 |
62,126 |
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214,019 |
175,333 |
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| Selling, general and administrative expenses |
48,540 |
40,375 |
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134,397 |
114,065 |
| Research and development expenses |
7,201 |
6,623 |
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20,864 |
19,957 |
| Depreciation and amortization |
2,681 |
2,330 |
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7,627 |
7,078 |
| Total operating expenses |
58,422 |
49,328 |
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162,888 |
141,100 |
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| Income from operations |
19,372 |
12,798 |
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51,131 |
34,233 |
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| Non-operating income (expense), net |
(254) |
117 |
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1,081 |
1,573 |
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| Income before taxes, minority interests, and equity in net earnings of affiliates |
19,118 |
12,915 |
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52,212 |
35,806 |
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| Income tax provision |
4,777 |
5,230 |
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16,029 |
14,501 |
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| Income before minority interests and equity in net earnings of affiliates |
14,341 |
7,685 |
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36,183 |
21,305 |
| Minority interests and equity in net earnings of affiliates |
(163) |
(168) |
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(591) |
(471) |
| Net income |
$14,178 |
$7,517 |
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$35,592 |
$20,834 |
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| Net income per common share: |
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| Basic |
$0.37 |
$0.20 |
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$.96 |
$0.57 |
| Diluted |
$0.35 |
$0.19 |
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$.90 |
$0.54 |
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| Weighted-average number of shares outstanding: |
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| Basic |
37,885 |
36,771 |
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37,255 |
36,398 |
| Diluted |
40,112 |
38,877 |
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39,562 |
38,374 |
MICROS SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited - in thousands, except per share amounts)
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March 31, |
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June 30, |
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2005 |
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2004 |
| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$93,925 |
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$83,451 |
| Short Term Investments |
$22,000 |
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$8,000 |
| Accounts receivable, net |
124,830 |
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101,367 |
| Inventories, net |
44,754 |
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36,095 |
| Deferred income taxes |
7,971 |
|
9,396 |
| Prepaid expenses and other current
assets |
33,599 |
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16,242 |
| Total current assets |
327,079 |
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254,551 |
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| Property, plant and equipment, net |
21,285 |
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19,550 |
| Deferred income taxes, non-current |
25,923 |
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24,288 |
| Goodwill, net |
80,451 |
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70,715 |
| Intangible assets, net |
6,945 |
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5,476 |
| Purchased and internally developed software costs, net |
40,561 |
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41,112 |
| Investments |
411 |
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415 |
| Other assets |
2,016 |
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2,785 |
| Total assets |
$504,671 |
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$418,892 |
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| LIABILITIES AND SHAREHOLDERS' EQUITY |
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| Current liabilities: |
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| Bank lines of credit |
$2,585 |
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$2,481 |
| Current portion of capital lease obligations |
194 |
|
139 |
| Accounts payable |
29,865 |
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29,681 |
| Accrued expenses and other current liabilities |
66,336 |
|
58,693 |
| Income taxes payable |
2,992 |
|
1,541 |
| Deferred income taxes |
956 |
|
512 |
| Deferred service revenue |
61,147 |
|
43,019 |
| Total current liabilities |
164,075 |
|
136,066 |
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| Capital lease obligations, net of current portion |
184 |
|
166 |
| Deferred income taxes, non-current |
16,511 |
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15,544 |
| Other non-current liabilities |
1,507 |
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1,401 |
| Commitments and contingencies |
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| Minority interests |
2,881 |
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2,742 |
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| Shareholders' equity: |
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| Common stock |
475 |
|
457 |
| Capital in excess of par |
86,494 |
|
71,525 |
| Retained earnings |
221,250 |
|
185,660 |
| Accumulated other comprehensive income (loss) |
11,294 |
|
5,331 |
| Total shareholders' equity |
319,513 |
|
262,973 |
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| Total liabilities and shareholders' equity |
$504,671 |
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$418,892 |
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