MICROS Reports Fiscal 2007 Results: Revenue, Net Income and EPS Exceed Expectations; Record Fourth Quarter and Fiscal Year Revenue, Net Income and EPS

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 2007 fourth quarter and fiscal year ending June 30, 2007.  

FINANCIAL HIGHLIGHTS

-Revenue for the quarter was $221.6 million, an increase of $29.8 million, or 15.5%, over the same period last year. 

-Revenue for the fiscal year was $785.7 million, an increase of $106.8 million, or 15.7% over the same period last year. 

-GAAP net income for the quarter was $27.4 million, an increase of $6.0 million, or 28.2% over the same period last year. 

-GAAP net income for the fiscal year was $80.0 million, an increase of $16.5 million, or 25.9% over the same period last year. 

-GAAP diluted earnings per share (EPS) for the quarter was $0.66 per share, an increase of $0.13 per share, or 24.5% over the same period last year.

-GAAP diluted EPS for the fiscal year was $1.94 per share, an increase of $0.38 per share, or 24.4% over the same period last year. 

-Non-GAAP financial results, excluding the effect of Financial Accounting Standard (FAS) No. 123 (R), which requires us to record the share-based payment charge, are as follows:

·          Non-GAAP net income for the quarter was $31.2 million, an increase of $7.8 million, or 33.3% over the year ago period.

·          Non-GAAP net income for the fiscal year was $91.1 million, an increase of $20.5 million, or 29.0% over the year ago period. 

·          Non-GAAP diluted EPS for the quarter was $0.75 per share, an increase of $0.17 per share, or 29.3% over year ago period.

·          Non-GAAP diluted EPS for the fiscal year was $2.21 per share, an increase of $0.47, or 27.0% over the year ago period.

-MICROS’s financial results were Company records for both a fiscal quarter and a fiscal year.

Tom Giannopoulos, MICROS’s Chairman and CEO, stated, “We are extremely pleased with the results of the fourth quarter and fiscal year.  We continue to deliver record performance, driven by the right business strategy, great products and a global infrastructure designed to serve the information technology needs of our customers worldwide.”

MICROS’s guidance for its fiscal 2008 first quarter ending September 30, 2007 is for revenue between $201.0 million and $204.0 million, and non-GAAP net income, excluding the currently projected share-based payment charge for the first quarter, between $21.0 million and $22.0 million, or non-GAAP earnings per share between $0.50 and $0.52.  Guidance for GAAP net income is between $18.5 million and $19.0 million, or earnings per diluted share of $0.43 to $0.45.

Guidance for the fiscal 2008 year ending June 30, 2008 is for revenue between $910.0 million and $915.0 million and non-GAAP net income, excluding the currently projected share-based payment charge for the fiscal year, between $109.0 million and $111.0 million, or non-GAAP earnings per diluted share between $2.59 and $2.62.  Guidance for GAAP net income is between $97.0 million and $99.0 million, or earnings per diluted share of $2.29 to $2.34.

Commencing with the fiscal 2008 second quarter, MICROS will no longer provide quarterly guidance; MICROS will continue to provide fiscal year annual guidance.  MICROS management is in agreement with a growing consensus that publishing quarterly guidance may create an undue focus on short term financial performance.  

MICROS’s stock is traded through NASDAQ under the symbol MCRS.  Some of the statements contained herein not based on historic facts are forward-looking statements that involve risks and uncertainties.  An example of a forward looking statement includes the statements in the paragraphs where MICROS provides guidance for its first fiscal quarter ending September 30, 2007 and fiscal 2008 year ending June 30, 2008, and Mr. Giannopoulos’s quote.  MICROS is subject to, among others, the following uncertainties and risks: product demand and market acceptance; impact of competitive products and pricing on margins; product development delays and technological difficulties; controlling expenses as MICROS continues to expand; the ability to obtain on acceptable terms the right to incorporate in MICROS’s products and services technology patented by others; the risk that there are actual or perceived security vulnerabilities in MICROS’s products; adverse results in legal disputes resulting in liabilities that exceed reserves; unanticipated tax liabilities; the effects of terrorist activity and armed conflict; the effects of major environmental disasters; weakening in general economic conditions that adversely affect demand for computer hardware or software; and currency fluctuations.

All information in this release is as of August 28, 2007.  MICROS undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in MICROS’s expectations.

For further information regarding risks and uncertainties associated with MICROS’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business and Investment Risks” sections of MICROS’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting MICROS’s investor relations department at 443-285-8059 or at MICROS’s website at http://www.micros.com.

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)