NASDAQ: MCRS 0 (00/00/0000 00:00am)


Press Release

MICROS REPORTS FISCAL 2011 RESULTS RECORD REVENUE, OPERATING INCOME, 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 2011 fourth quarter and fiscal year ending June 30, 2011.

FINANCIAL HIGHLIGHTS

  • Revenue for the fiscal 2011 fourth quarter was $274.1 million, an increase of $25.9 million, or 10.4% over the same period last year.
  • Revenue for the fiscal year was $1,007.9 million, an increase of $93.5 million, or 10.2%, over the same period last year.
  • GAAP net income for the quarter was $41.5 million, an increase of $7.7 million, or 22.6% over the same period last year.
  • GAAP net income for the fiscal year was $144.1 million, an increase of $29.7 million, or 26.0%, over the same period last year.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.50, an increase of $0.08, or 19%, over the same period last year.
  • GAAP diluted EPS for the fiscal year was $1.74, an increase of $0.33, or 23.4%, over the same period last year.

During the fourth quarter, we recorded an impairment charge of $4.2 million related to our investments in auction rate securities.

  • Non-GAAP financial results, excluding the effect of charges for stock options, the investment impairment, and a charge for a lawsuit incurred in the second fiscal quarter, are as follows:
    • Non-GAAP net income for the quarter was $47.7 million, an increase of $8.0 million, or 20%, over the same period last year.
    • Non-GAAP net income for the fiscal year was $158.4 million, an increase of $31.2 million, or 24.5%, over the same period last year.
    • Non-GAAP diluted EPS for the quarter was $0.58, an increase of $0.09, or 18.4%, over the same period last year.
    • Non-GAAP diluted EPS for the fiscal year $1.92, an increase of $0.35, or 22.3%, over the same period last year.

The financial results for the fourth fiscal quarter exceeded consensus expectations. The revenue, operating income, net income and EPS for the quarter and fiscal year were records for MICROS.

Tom Giannopoulos, MICROS’s Chairman and CEO, stated, “We are very pleased with our excellent results, in which for the first time in our history we exceeded the $1 Billion annual sales milestone, and achieved record revenue, operating income, net income and EPS for both the quarter and the fiscal year. Our strong and expanding portfolio of products and services provides us with a great foundation for continued profitable growth.”

MICROS’s financial guidance for fiscal 2012 is for revenue of $1,111,000 and Non-GAAP EPS of $2.09.

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. 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 25, 2011. 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)

             
Three Months Ended Fiscal Year Ended
June 30, June 30,
2011 2010 2011 2010
Revenue:
Hardware  $56,995  $52,027  $199,003  $188,333
Software 35,080 34,072 127,123 118,788
Service 182,060 162,118 681,733 607,198
Total revenue

274,135

248,217 1,007,859 914,319
Cost of sales:
Hardware 33,532 31,074 126,667 119,489
Software 5,166 7,197 21,200 25,731
Service 80,519 73,548 299,818 267,481
Stock option expense 18 32 105 137
Total cost of sales 119,235 111,851 447,790 412,838
Gross margin 154,900 136,366 560,069 501,481
Selling, general and administrative expenses 69,948 66,755 272,229 262,251
Research and development expenses 12,131 10,947 45,248 41,718
Depreciation and amortization 4,880 4,476 16,790 17,311
Litigation reserve 0 0 3,000 0
Stock option expense 2,908 2,529 12,343 12,228
Total operating expenses 89,867 84,707 349,610 333,508
Income from operations 65,033 51,659 210,459 167,973
Non-operating income (expense):
Interest income, net        1,558        1,094        5,023        3,817
Interest expense - litigation reserve             -               -           (360)             -  
Change in credit based impairment, net of realized gain on redemption      (4,236)      (4,396)      (4,217)      (4,783)
Other non-operating (expense) income, net         (561)        1,028      (1,293)        1,118
Total non-operating income, net       (3,239)       (2,274)          (847)           152
Income before taxes 61,794 49,385 209,612 168,125
Income tax provision  20,233 15,152 64,999 52,745
Net income 41,561 34,233 144,613 115,380
Less:  Net income attributable to noncontrolling interest (25) (353) (554) (1,027)
Net Income attributable to MICROS Systems, Inc. (GAAP)  $41,536  $33,880  $144,059  $114,353
Net Income per diluted common share attributable to
MICROS Systems, Inc.
 $0.50  $0.42  $1.74  $1.41
Weighted-average number of shares outstanding - diluted 82,952 81,871 82,672 81,448

Reconciliation of GAAP Net Income and EPS attributable to MICROS Systems, Inc. to
Non-GAAP Net Income and EPS attributable to MICROS Systems, Inc.
Net Income attributable to MICROS Systems, Inc.  $41,536  $33,880  $144,059  $114,353
Add back:  
  Stock option expense  
      Selling, general and administrative expenses        2,680        2,417      11,747      11,717
      Research and development expenses           228           112           596           511
      Cost of sales             18             32           105           137
         2,926        2,561      12,448      12,365
  Litigation reserve, including accrued interest expense             -               -          3,360             - 
  Credit based impairment charge, net of realized gain on redemption        4,236        4,396        4,217       4,783
  Total add back        7,162        6,957      20,025      17,148
   
Subtract tax effect on:  
  Stock option expense           969        1,061        4,426       4,283
  Litigation reserve, including accrued interest expense             -               -          1,280             -  
Non-GAAP Net Income attributable to MICROS Systems, Inc.  $47,729  $39,776  $158,378  $127,218
   
Non-GAAP Net Income per Diluted Common Share attributable to
MICROS Systems, Inc.
 $0.58  $0.49  $1.92  $1.57
We believe the inclusion of the above non-GAAP measure will be useful to investors because it will enhance the comparability of our current period results to prior periods' results without comparable charges. We also believe inclusion of this measure will enhance comparability of our results to results of our competitors and to the analysts’ forecasts because the analysts typically forecast excluding the effect of share-based payment charge and above one time charges, 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-GAAP items can have a significant impact on reported GAAP net income and diluted net income per share.
  • 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,
2011
June 30,
2010
ASSETS
Current assets:
     Cash and cash equivalents and short-term investments  $       780,265  $       545,298
     Accounts receivable, net 181,833 153,066
     Inventory, net 38,119 35,103
     Deferred income taxes 21,036 19,624
     Prepaid expenses and other current assets 30,454 27,004
           Total current assets 1,051,707 780,095
Long-term investments 46,226 59,884
Property, plant and equipment, net 28,145 27,349
Deferred income taxes, non-current 20,798 13,556
Goodwill 242,319 213,825
Intangible assets, net 19,293 19,590
Purchased and internally developed software costs, net 18,710 17,468
Other assets 5,820 6,524
Total Assets  $    1,433,018  $    1,138,291
LIABILITIES AND EQUITY
Current liabilities:
     Bank lines of credit  $               -    $          1,442
     Accounts payable 54,851 44,783
     Accrued expenses and other current liabilities 148,901 135,469
     Income taxes payable 7,705 5,856
     Deferred revenue 143,238 124,498
         Total current liabilities           354,695           312,048
Income taxes payable, non-current 32,309 22,737
Deferred income taxes, non-current 8,261 2,590
Other non-current liabilities 14,502 11,304
         Total liabilities 409,767 348,679
Commitments and contingencies
Equity:
  MICROS Systems, Inc. shareholders’ equity:
     Common stock              2,020              2,001
     Capital in excess of par 132,529 117,462
     Retained earnings 833,839 689,750
     Accumulated other comprehensive income (loss) 48,323 (25,833)
          Total MICROS Systems, Inc. shareholders’ equity 1,016,711 783,380
  Noncontrolling interest 6,540 6,232
Total Equity 1,023,251 789,612
Total Liabilities and Equity  $    1,433,018  $    1,138,291

Contacts

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

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