EX-99.1 2 e19525ex99_1.htm PRESS RELEASE

Exhibit 99.1

MICROS Reports Fiscal 2005 First Quarter Results

Revenue, Net Income and EPS Exceed Expectations; Record First Quarter Revenue, Net Income and EPS

        COLUMBIA, Md., Oct. 28 /PRNewswire-FirstCall/ — MICROS Systems, Inc. (Nasdaq: MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2005 first quarter ended September 30, 2004. Revenue for the quarter was $130.0 million, an increase of $23.5 million, or 22.1%, over the same period last year. Net income for the quarter was $9.7 million, an increase of $4.9 million, or 103.5%, over the year ago first quarter. Earnings per share, on a diluted basis, were $0.50, an increase of $0.25, or 100.0%, over the year ago figure of $0.25 per diluted share.

        Revenue, net income and earnings per share results were records for a first fiscal quarter and also significantly exceeded consensus expectations.

        Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are extremely pleased with our financial results for the first quarter and the excellent start of our 2005 fiscal year. During the quarter, we experienced strong demand for our products and services, a trend that bodes well for meeting our objectives for the rest of the fiscal year.”

        MICROS’s guidance for its fiscal 2005 second quarter ending December 31, 2004 is for revenue between $128.0 million and $130.0 million, and net income between $9.0 million and $10.0 million. MICROS’s guidance for its fiscal 2005 year ending June 30, 2005 has been increased to revenue between $535.0 million and $540.0 million, and net income between $45.0 million and $46.0 million.

        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. Some of those uncertainties are: product demand and market acceptance; adverse economic factors; impact of competitive products and pricing on margins; product development delays and technological difficulties; and aggressively controlling expenses. Other risks are indicated in the MICROS Form 10-K and other filings with the Securities and Exchange Commission. MICROS assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)

    First Quarter Ended Sept. 30,
Revenue:   2004  2003 
  Hardware   $39,301   $33,946  
  Software   22,878   17,838  
  Service   67,783   54,633  
Total revenue   129,962   106,417  
Cost of sales:  
  Hardware   26,211   23,742  
  Software   5,169   5,004  
  Service   33,448   25,536  
Total cost of sales   64,828   54,282  
           
Gross margin   65,134   52,135  
           
Selling, general and administrative expenses   41,068   35,562  
Research and development expenses   6,711   6,174  
Depreciation and amortization   2,401   2,317  
Total operating expenses   50,180   44,053  
           
Income from operations   14,954   8,082  
           
Non-operating income, net   429   155  
   
Income before taxes, minority interests,  
           
 and equity in net earnings of affiliates   15,383   8,237  
           
Income tax provision   5,538   3,336  
   
Income before minority interests and equity  
           
 in net earnings of affiliates   9,845   4,901  
   
Minority interests and equity in net earnings  
 of affiliates   (184 ) (154 )
Net income   $9,661   $4,747  
   
Net income per common share:  
  Basic   $0.53   $0.26  
  Diluted   $0.50   $0.25  
   
Weighted-average number of shares outstanding:  
  Basic   18,334   18,036  
  Diluted   19,309   18,940  

MICROS SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(Unadudited - in thousands)

September 30, June 30,
2004 2004
ASSETS
           
Current assets:      
  Cash and cash equivalents   $98,952   $91,451  
  Accounts receivable, net   102,162   101,367  
  Inventories, net   38,273   36,095  
  Deferred income taxes   9,905   9,396  
  Prepaid expenses and other current assets   16,685   16,242  
    Total current assets   265,977   254,551  
           
Property, plant and equipment, net   20,150   19,550  
Deferred income taxes, non-current   24,393   24,288  
Goodwill, net   70,813   70,715  
Intangible assets, net   5,321   5,476  
Purchased and internally developed software  
 costs, net   41,226   41,112  
Other investments   413   415  
Other assets   2,664   2,785  
Total assets   $430,957   $418,892  
   
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current liabilities:  
  Bank lines of credit   $2,493   $2,481  
  Current portion of capital lease obligations   181   139  
  Accounts payable   24,473   29,681  
  Accrued expenses and other current liabilities   53,081   58,693  
  Income taxes payable   2,351   1,541  
  Deferred income taxes   333   512  
  Deferred service revenue   53,596   43,019  
    Total current liabilities   136,508   136,066  
           
Capital lease obligations, net of current portion   167   166  
Deferred income taxes, non-current   15,547   15,544  
Other non-current liabilities   1,431   1,401  
Commitments and contingencies  
Minority interests   2,881   2,742  
   
Shareholders’ equity:  
  Common stock   459   457  
  Capital in excess of par   70,545   71,525  
  Retained earnings   195,321   185,660  
  Accumulated other comprehensive loss   8,098   5,331  
    Total shareholders’ equity   274,423   262,973  
           
Total liabilities and shareholders’ equity   $430,957   $418,892  

SOURCE MICROS Systems, Inc.

     -0-                                    10/28/2004

     /CONTACT: Peter J. Rogers, Jr., Vice President, Investor Relations of
MICROS Systems, Inc., +1-443-285-8059 or progers@micros.com/

   /Web site: http://www.micros.com/
  (MCRS)

CO: MICROS Systems, Inc.
ST: Maryland
IN: CPR STW
SU: ERN