MICROS Reports Fiscal 2007 First Quarter Results Record First Quarter 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 th e hospitality and retail industries, today announced th e results for its fiscal 2007 first quarter ended September 30, 2006.  

      FINANCIAL HIGHLIGHTS

        -MICROS implemented the Statement of Financial Accounting Standard No. 123(R) (“FASB 123R”), “Share-based Payments,” which became effective July 1, 2005, during its fiscal year 2006. 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 restatement of previously issued financial statements.  MICROS will report its net income and earnings per share during fiscal year 2007 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.

       -Revenue for the quarter was $173.7 million, an increase of $21.7 million, or 14.3%, over the same period

         last year.  Revenue exceeded consensus expectations and was above MICROS’s first quarter guidance.

        -GAAP net income for the quarter was $15.1 million, an increase of $2.8 million, or 22.3%, over the same period
          last year.

        -GAAP EPS, per diluted share, was $0.37 per share, an increase of $0.07, or 23.3%, over the same period  
         last year.

        -Net income, before the share-based payment charge, a non-GAAP measure, was $17.4 million, an increase of

         $3.7 million, or 27.2%, over the same period last year.

       -EPS, per diluted share, before the share-based payment charge, a non-GAAP measure, was $0.43 per share,

        an increase of $0.09 per share, or 26.5% over the same period last year.

       -Net income and earnings per diluted share, before and after the share-based payment charge, exceeded

         consensus expectations and were above first quarter guidance.

       -MICROS’s financial results were Company records for the first fiscal quarter.

Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are pleased with the results for our first quarter and the excellent start of our fiscal year.”

MICROS’s guidance for its fiscal 2007 second quarter ending December 31, 2006 is for revenue between $186.0 million and $189.0 million, and GAAP net income between $16.7 million and $17.7 million, or GAAP earnings per share between $0.41 and $0.43.  Guidance for net income, excluding the currently projected share-based payment charge for the second fiscal quarter, is between $19.0 million and $20.0 million, or non-GAAP earnings per share between $0.46 and $0.49.

Guidance for the fiscal 2007 year ending June 30, 2007 remains the same at revenue between $778.0 million and $781.0 million; 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; and GAAP net income between $78.3 million and $80.3 million, or earnings per diluted share of $1.90 to $1.94.

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 above where MICROS provides guidance for its fiscal 2007 second quarter ending December 31, 2006, and its fiscal 2007 year ending June 30, 2007.  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 October 26, 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 443-285-8059 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)