MICROS Reports Fiscal 2012 First Quarter Results

MICROS Reports Fiscal 2012 First Quarter Results

RECORD FIRST FISCAL QUARTER REVENUE, NET INCOME AND EPS; RESULTS EXCEED EXPECTATIONS

PR Newswire

COLUMBIA, Md., Oct. 27, 2011

COLUMBIA, Md., Oct. 27, 2011 /PRNewswire/ -- MICROS Systems, Inc. (NASDAQ: MCRS), a leading provider of information technology solutions for the hospitality and retail industries, today announced the results for its fiscal 2012 first quarter ended September 30, 2011.  

FINANCIAL HIGHLIGHTS

• Revenue for the quarter was $256.6 million, an increase of $23.1 million, or 9.9%, over the same period last year.
• GAAP net income for the quarter was $37.2 million, an increase of $5.6 million, or 17.8%, over the same period last year.
• GAAP diluted earnings per share (EPS) for the quarter was $0.45 per share, an increase of $0.06, or 15.4% over the same period last year.
• Non-GAAP financial results for the quarter, excluding the effect of charges for stock options, are as follows:
  • Non-GAAP net income for the quarter was $39.3 million, an increase of $5.9 million, or 17.7%, over the same period last year.
  • Non-GAAP diluted EPS for the quarter was $0.48 per share an increase of $0.07, or 17.1%, over the same period last year.

The financial results were records for a first fiscal quarter and exceeded consensus expectations.

Tom Giannopoulos, MICROS's Chairman and CEO, stated: "We are pleased with the start of our 2012 fiscal year, which produced record revenue, net income and EPS for a first fiscal quarter."

MICROS's financial guidance for fiscal 2012 remains the same as previously provided in August 2011 with revenue of $1,111,000 and Non-GAAP EPS of $2.09.

MICROS's stock is traded through NASDAQ under the symbol MCRS.  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 October 27, 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.

About MICROS Systems, Inc.
MICROS Systems, Inc. provides enterprise applications for the hospitality and retail industries worldwide. Over 330,000 MICROS systems are currently installed in table and quick service restaurants, hotels, motels, casinos, leisure and entertainment, and retail operations in more than 180 countries, and on all seven continents. In addition, MICROS provides property management systems, central reservation and customer information solutions under the brand MICROS-Fidelio for more than 26,000 hotels worldwide, as well as point-of-sale, loss prevention, and cross-channel functionality through its MICROS-Retail division for more than 100,000 retail stores worldwide. MICROS stock is traded through NASDAQ under the symbol MCRS.

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

MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
			Three Months Ended
			September 30,
			2011		2010
Revenue:
	Hardware		$                                          48,409		$44,266
	Software		33,273		27,889
	Service		174,876		161,259
Total revenue			256,558		233,414
Cost of sales:
	Hardware		30,163		29,955
	Software		4,859		5,826
	Service		77,083		71,178
	Stock option expense		37		35
Total cost of sales			112,142		106,994
Gross margin			144,416		126,420
	Selling, general and administrative expenses		72,751		62,191
	Research and development expenses		11,026		10,661
	Depreciation and amortization		4,236		4,118
	Stock option expense		2,968		2,610
Total operating expenses			90,981		79,580
Income from operations			53,435		46,840
Non-operating income (expense):
	Interest income, net		1,815		1,056
	Change in credit based impairment, net of realized gain on redemption		-		92
	Other non-operating (expense) income, net		547		(900)
Total non-operating income, net			2,362		248
Income before taxes			55,797		47,088
Income tax provision			18,414		15,393
Net income			37,383		31,695
Less:  Net income attributable to noncontrolling interest			(151)		(78)
Net Income attributable to MICROS Systems, Inc. (GAAP)			$                                          37,232		$31,617
Net Income per diluted common share attributable to MICROS Systems, Inc.			$                                              0.45		$    0.39
Weighted-average number of shares outstanding - diluted			82,410		82,023
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.			$                                          37,232		$31,617
Add back:
	Stock option expense
	Selling, general and administrative expenses		2,659		2,484
	Research and development expenses		309		126
	Cost of sales		37		35
			3,005		2,645
	Credit based impairment charge, net of realized gain on redemption		-		(92)
	Total add back		3,005		2,553
Subtract tax effect on stock option expense			943		789
Non-GAAP Net Income attributable to MICROS Systems, Inc.			$                                          39,294		$33,381
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.			$                                              0.48		$    0.41

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)
		September 30, 2011		June 30, 2011
ASSETS
Current assets:
Cash and cash equivalents and short-term investments		$                           735,425		$   780,265
Accounts receivable, net		177,074		181,833
Inventory, net		40,451		38,119
Deferred income taxes		19,674		21,036
Prepaid expenses and other current assets		37,926		30,454
Total current assets		1,010,550		1,051,707
Long-term investments		43,482		46,226
Property, plant and equipment, net		28,021		28,145
Deferred income taxes, non-current		21,716		20,798
Goodwill		237,779		242,319
Intangible assets, net		17,361		19,293
Purchased and internally developed software costs, net		18,152		18,710
Other assets		5,941		5,820
Total Assets		$                        1,383,002		$1,433,018
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$                             50,081		$     54,851
Accrued expenses and other current liabilities		128,160		148,901
Income taxes payable		1,503		7,705
Deferred revenue		151,879		143,238
Total current liabilities		331,623		354,695
Income taxes payable, non-current		35,348		32,309
Deferred income taxes, non-current		6,190		8,261
Other non-current liabilities		15,069		14,502
Total liabilities		388,230		409,767
Commitments and contingencies
Equity:
MICROS Systems, Inc. shareholders’ equity:
Common stock		2,007		2,020
Capital in excess of par		111,779		132,529
Retained earnings		871,071		833,839
Accumulated other comprehensive income		3,631		48,323
Total MICROS Systems, Inc. shareholders’ equity		988,488		1,016,711
Noncontrolling interest		6,284		6,540
Total Equity		994,772		1,023,251
Total Liabilities and Equity		$                        1,383,002		$1,433,018

SOURCE MICROS Systems, Inc.

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