NASDAQ: MCRS 0 (00/00/0000 00:00am)


Press Release

MICROS REPORTS FISCAL 2008 RESULTS: 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 2008 fourth quarter and fiscal year ending June 30, 2008.  

 

FINANCIAL HIGHLIGHTS

     

-Revenue for the quarter was $256.6 million, an increase of $35.0 million, or 15.8%, over the same period last year. 

 

-Revenue for the fiscal year was $954.2 million, an increase of $168.5 million, or 21.4% over the same period last year. 

 

-GAAP net income for the quarter was $30.7 million, an increase of $3.3 million, or 12.2% over the same period last year. 

 

-GAAP net income for the fiscal year was $101.3 million, an increase of $21.3 million, or 26.6% over the same period last year. 

 

-GAAP diluted earnings per share (EPS) for the quarter was $0.37 per share, an increase of $0.04 per share, or 12.1% over the same period last year.

 

-GAAP diluted EPS for the fiscal year was $1.21 per share, an increase of $0.24 per share, or 24.7% 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 $33.8 million, an increase of $2.5 million, or 8.1% over the year ago period.

 

         Non-GAAP net income for the fiscal year was $114.4 million, an increase of $23.3 million, or 25.6% over the year ago period. 

 

         Non-GAAP diluted EPS for the quarter was $0.41 per share, an increase of $0.03 per share, or 7.9% over year ago period.

 

         Non-GAAP diluted EPS for the fiscal year was $1.37 per share, an increase of $0.27, or 24.5% 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 record results of the 2008 fourth quarter and fiscal year.  As we now enter fiscal year 2009, we believe we have the right people, infrastructure and products in place which will allow us to continue to grow our company and expand our customer base.”

 

Guidance for the fiscal 2009 year ending June 30, 2009 is for revenue between $1,075.0 million and $1,100.0 million and non-GAAP net income, excluding the currently projected share-based payment charge for the fiscal year, between $128.5 million and $137.5 million, or non-GAAP earnings per diluted share between $1.53 and $1.64.  Guidance for GAAP net income is between $117.0 million and $126.0 million, or earnings per diluted share of $1.39 to $1.50.

 

 

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 2009 year ending June 30, 2009, 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, 2008.  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)


             
Fourth quarter ended Twelve months ended
June 30, June 30,
2008 2007 2008 2007
Revenue:
  Hardware $68,581 $65,694 $265,965 $233,838
  Software 45,421 38,280 158,699 132,820
  Service 142,562 117,620 529,520 419,069
Total revenue 256,564 221,594 954,184 785,727
Cost of sales:
  Hardware 44,674 41,104 171,779 149,085
  Software 7,581 7,938 33,252 29,531
  Service 67,171 53,579 247,954 195,600
Total cost of sales 119,426 102,621 452,985 374,216
Gross margin 137,138 118,973 501,199 411,511
Selling, general and administrative expenses 76,463 63,302 290,411 241,075
Research and development expenses 10,438 9,720 39,113 33,131
Depreciation and amortization 4,388 3,599 15,143 12,721
Stock option expense (*) 3,785 4,723 17,229 13,996
Total operating expenses 95,074 81,344 361,896 300,923
Income from operations 42,064 37,629 139,303 110,588
Non-operating income, net 4,532 3,709 15,036 11,066
Income before taxes, minority interests, and equity in net earnings of affiliates  46,596 41,338 154,339 121,654
Income tax provision  16,304 13,861 52,167 40,754
Income before minority interests and equity in net earnings of affiliates  30,292 27,477 102,172 80,900
Minority interests and equity in net earnings of affiliates 454 (67) (888) (912)
Net income  $30,746 $27,410 $101,284 $79,988
 
     Net income per common share – diluted $0.37 $0.33 $1.21 $0.97
     Weighted-average number of shares outstanding -diluted 82,766 83,171 83,346 82,581
Reconciliation of GAAP Net Income and EPS, and Net Income and EPS before share-based payment charge, i.e. stock option expense
Net income  $30,746   $27,410   $101,284   $79,988
Add back:   Stock option expense (*)  
        Selling, general and administrative expenses 3,568 4,392 16,213 13,243
        Research and development expenses 217 331 1,016 753
     Total stock option expense 3,785 4,723 17,229 13,996
   
Subtract:   Total tax effect on stock option expense 769 902 4,083 2,883
Net income (before share-based payment charge) $33,762 $31,231 $114,430 $91,101
   
   
Net income per common share-diluted
(before share-based payment charge):
$0.41 $0.38 $1.37 $1.10


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.

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited - in thousands)


June 30, June 30,
2008 2007
ASSETS
Current assets:
     Cash and cash equivalents $381,964 $242,702
     Short-term investments 0 86,950
     Accounts receivable, net 192,445 180,203
     Inventory, net 64,575 47,790
     Deferred income taxes 18,724 16,683
     Prepaid expenses and other current assets 29,737 27,650
           Total current assets 687,445 601,978
Investment, non-current 65,216 0
Property, plant and equipment, net 29,165 27,955
Deferred income taxes, non-current 7,108 23,145
Goodwill 159,722 138,332
Intangible assets, net 16,168 14,509
Purchased and internally developed software costs, net 30,846 36,296
Other assets 7,336 4,541
Total assets $1,003,006 $846,756
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
     Bank lines of credit $989 $2,308
     Accounts payable 46,843 43,126
     Accrued expenses and other current liabilities 124,913 117,142
     Income taxes payable 6,363 8,094
     Deferred revenue 115,398 86,742
         Total current liabilities          294,506 257,412
Income taxes payable, non-current 18,302 0
Deferred income taxes, non-current 2,181 15,934
Other non-current liabilities 8,103 17,554
         Total liabilities 323,092 290,900
Minority interests and minority ownership put arrangement 6,898 4,723
Commitments and contingencies
Shareholders’ equity:
     Common stock 506 507
     Capital in excess of par 131,517 149,089
     Retained earnings 480,777 382,785
     Accumulated other comprehensive income 60,216 18,752
          Total shareholders’ equity 673,016 551,133
Total liabilities and shareholders’ equity $1,003,006 $846,756

Contacts

Peter J. Rogers, Jr.
Executive Vice President, Investor Relations
MICROS Systems, Inc.
443-285-8059
progers@micros.com

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