MICROS Reports Fiscal 2006 Year Results Record Quarterly 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 2006 fourth quarter and fiscal year ending June 30, 2006.  

      FINANCIAL HIGHLIGHTS

        -Commencing the first quarter of fiscal year 2006, MICROS implemented the Statement of Financial Accounting Standard No. 123(R) (“FASB 123R”), “Share-based Payments,” which became effective July 1, 2005. The statement requires companies to expense the fair value of grants made under stock option programs over the vesting period of the options.  The expense is a non-cash transaction. The Company adopted the “Modified Prospective Application” transition method that does not result in the restatement of previously issued financial statements.  MICROS will report its net income and earnings per share during fiscal year 2006 on both Generally Accepted Accounting Principles (“GAAP”) (which includes the share-based payment charge, which represents the non-cash stock option expense) and non-GAAP (which excludes the share-based payment charge, which represents the non-cash stock option expense) bases in order to facilitate analysis of the business and meaningful period-to-period comparisons.

       -Revenue for the quarter was $191.8 million, an increase of $19.8 million, or 11.5%, over the same period last year.  Revenue for the fiscal year was $679.0 million, an increase of $81.7 million, or 13.7%, over the previous fiscal year.

        -GAAP net income for the quarter was $21.4 million. GAAP net income for the fiscal year was $63.5 million.

        -GAAP EPS for the quarter, per diluted share, was $0.53.  GAAP EPS for the fiscal year, per diluted share, was $1.56.

        -Net income for the quarter, before the share-based payment charge, a non-GAAP measure, was $23.4 million, an increase of $5.4 million, or 29.7% over the year ago period.  Net income for the fiscal year, before the share-based payment charge, was $70.6 million, an increase of $17.0 million, or 31.6% over the previous fiscal year.

       -EPS for the quarter, per diluted share, before the share-based payment charge, a non-GAAP measure, was $0.58,

         an increase of $0.13, or 28.9% over year ago period.  EPS for the fiscal year, per diluted share, before the share-based payment charge, was $1.74, an increase of $0.39, or 28.9% over the previous fiscal year.

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

Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are extremely pleased with the record results for the fourth quarter and fiscal year.  We are proud of our achievements and are appreciative of the trust that customers put in our products and services.  The quality of our products and the outstanding efforts of our employees continue to contribute to our success.”

MICROS’s guidance for its fiscal 2007 first quarter ending September 30, 2006 is for revenue between $170.0 million and $173.0 million, and non-GAAP net income, excluding the currently projected share-based payment charge for the first fiscal quarter, between $15.3 million and $16.5 million, or non-GAAP earnings per share between $0.38 and $0.41. Guidance for GAAP net income is between $13.6 million and $14.7 million, or earnings per diluted share of $0.33 to $0.36.

Guidance for the fiscal 2007 year ending June 30, 2007 is for revenue between $778.0 million and $781.0 million and non-GAAP net income, excluding the currently projected share-based payment charge for the fiscal year, between $86.5 million and $88.7 million, or non-GAAP earnings per diluted share between $2.10 and $2.14.  Guidance for GAAP net income is between $78.3 million and $80.3 million, or earnings per diluted share of $1.90 to $1.94.

To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents MICROS’s net income and earnings per diluted share, before the share-based payment charge, which is the non-cash stock option expense. This non-GAAP presentation of net income and earnings per share is provided to enhance the understanding of the Company’s historical financial performance and comparability between periods. The Company believes this presentation provides useful information.

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 fiscal 2007 first quarter ending September 30, 2006, and its fiscal 2007 year ending June 30, 2007, 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, such as hurricanes and tsunamis; 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 29, 2006.  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 443-285-8112 or at MICROS’s website at http://www.micros.com.