MICROS REPORTS FISCAL 2008 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 the hospitality and retail industries, today announced the results for its fiscal 2008 first quarter ended September 30, 2007. 

      FINANCIAL HIGHLIGHTS 

• Revenue for the quarter was $216.5 million, an increase of $42.8 million, or 24.6%, 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 $21.3 million, an increase of $6.2 million, or 41.0%, over the same period last year.
• GAAP diluted earnings per share (EPS), was $0.51 per share, an increase of $0.14, or 37.8%, 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 was $24.3 million, an increase of $7.0 million, or 40.1%, over the year ago period.
  • Non-GAAP diluted EPS, was $0.58, an increase of $0.15, or 34.9%, over the year ago period.
• 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.”

Guidance for the fiscal 2008 year ending June 30, 2008 remains the same at revenue between $910.0 million and $915.0 million; 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.

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 2008 year ending June 30, 2008.  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 25, 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.

We believe the inclusion of the above non-GAAP measure, excluding the effect of share-based payment charge, will be useful to investors because it will enhance the comparability of our results in recent periods to results in periods prior to our adoption of FAS 123(R).  We also believe inclusion of this measure will enhance comparability of our results to results of our competitors, particularly those who did not adopt FAS 123(R) during one or more periods included in their public filings, and to the analysts’ forecasts because the analysts continue to forecast excluding the effect of share-based payment charge, the non-GAAP measure.  In addition, our management uses this measure to evaluate our operating performance and compare our results to our competitors.  Management also uses this measure as a metric to measure performance under our executive compensation program.         

The Company notes that non-GAAP financial measures are not based on a comprehensive set of accounting    rules or principles.  Instead, they are based on subjective determinations by management designed to    supplement our GAAP financial measures.  They are subject to a number of important limitations and should    be considered only in conjunction with our consolidated financial statements prepared in accordance with    GAAP.  Among the limitations on the use of the non-GAAP measure are the following:    

• The exclusion of non-cash share-based payment charges can have a significant impact on reported GAAP net income and diluted net income per share.
• Other companies may utilize non-cash share-based payments to a significantly greater or lesser degree in relation to overall compensation than MICROS.
• Other companies may calculate non-GAAP net income and non-GAAP net income per share differently than MICROS does, limiting the usefulness of those measures for comparative purposes.