EX-99.1 2 v091385_ex99-1.htm
Exhibit 99.1
 
news    
Release Date: October 25, 2007
Contact:
 Peter J. Rogers, Jr.
Senior Vice President, Investor Relations
443-285-8059
 progers@micros.com
    
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.


news    
Release Date: October 25, 2007
Contact:
Peter J. Rogers, Jr.
SVP, Investor Relations
443-285-8059
    
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
 
   
First quarter ended Sept. 30,
 
 
 
2007
 
2006
 
Revenue:
         
Hardware
 
$
64,901
 
$
54,142
 
Software
   
30,851
   
27,757
 
Service
   
120,730
   
91,802
 
Total revenue
   
216,482
   
173,701
 
               
Cost of sales:
             
Hardware
   
39,938
   
33,966
 
Software
   
8,509
   
7,360
 
Service
   
54,793
   
43,706
 
Total cost of sales
   
103,240
   
85,032
 
               
Gross margin
   
113,242
   
88,669
 
               
Selling, general and administrative expenses
   
67,353
   
55,589
 
Research and development expenses
   
9,114
   
6,793
 
Depreciation and amortization
   
3,846
   
2,823
 
Stock option expense (*)
   
3,844
   
2,815
 
Total operating expenses
   
84,157
   
68,020
 
               
Income from operations
   
29,085
   
20,649
 
Non-operating income, net
   
3,322
   
2,231
 
               
Income before taxes, minority interests, and equity in net earnings of affiliates
   
32,407
   
22,880
 
Income tax provision
   
10,856
   
7,665
 
               
Income before minority interests and equity in net earnings of affiliates
   
21,551
   
15,215
 
Minority interests and equity in net earnings of affiliates
   
(247
)
 
(104
)
               
Net income (GAAP)
 
$
21,304
 
$
15,111
 
Net income per diluted common share (GAAP)
 
$
0.51
 
$
0.37
 
Weighted-average number of shares outstanding - diluted
   
41,756
   
40,651
 
 
  
Reconciliation of GAAP Net Income and EPS,
and Non-GAAP Net Income and EPS before share-based payment charge, i.e. stock option expense
 
Net income (GAAP)
 
$
21,304
 
$
15,111
 
Add back:
             
(*) Stock option expense
             
Selling, general and administrative expenses
   
3,542
   
2,692
 
Research and development expenses
   
302
   
123
 
Total stock option expense
   
3,844
   
2,815
 
Subtract:
             
Total tax effect on stock option expense
   
841
   
571
 
Net income, before share-based payment charge (Non-GAAP)
 
$
24,307
 
$
17,355
 
Net income per diluted common share,
             
before share-based payment charge (Non-GAAP)
 
$
0.58
 
$
0.43
 
 

 
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.
 
 
 
 

 
news    
Release Date: October 25, 2007
Contact:
Peter J. Rogers, Jr.
SVP, Investor Relations
443-285-8059
    
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands)
 
       
 
 
 
 
September 30,
 
June 30,
 
 
 
2007
 
2007
 
ASSETS
         
Current assets:
         
Cash and cash equivalents
 
$
240,528
 
$
242,702
 
Short-term investments
   
124,925
   
86,950
 
Accounts receivable, net
   
190,620
   
180,203
 
Inventory, net
   
51,948
   
47,790
 
Deferred income taxes
   
17,119
   
16,683
 
Prepaid expenses and other current assets
   
32,402
   
27,650
 
Total current assets
   
657,542
   
601,978
 
               
Property, plant and equipment, net
   
29,841
   
27,955
 
Deferred income taxes, non-current
   
21,975
   
23,145
 
Goodwill
   
151,915
   
138,332
 
Intangible assets, net
   
17,090
   
14,509
 
Purchased and internally developed software costs, net
   
35,725
   
36,296
 
Other assets
   
6,487
   
4,541
 
               
Total assets
 
$
920,575
 
$
846,756
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
             
Current liabilities:
             
Bank lines of credit
 
$
2,434
 
$
2,308
 
Accounts payable
   
40,499
   
43,126
 
Accrued expenses and other current liabilities
   
116,667
   
117,142
 
Income taxes payable
   
263
   
8,094
 
Deferred service revenue
   
104,799
   
86,742
 
Total current liabilities
   
264,662
   
257,412
 
               
Income taxes payable, non-current
   
11,915
   
0
 
Deferred income taxes, non-current
   
15,912
   
15,934
 
Other non-current liabilities
   
18,681
   
17,554
 
Total liabilities
   
311,170
   
290,900
 
Minority interests and minority ownership put arrangement
   
5,260
   
4,723
 
Commitments and contingencies
             
               
Shareholders’ equity:
             
Common stock
   
514
   
507
 
Capital in excess of par
   
172,102
   
149,089
 
Retained earnings
   
401,284
   
382,785
 
Accumulated other comprehensive income
   
30,245
   
18,752
 
Total shareholders’ equity
   
604,145
   
551,133
 
               
Total liabilities and shareholders’ equity
 
$
920,575
 
$
846,756