EX-99.1 2 v112335_ex99-1.htm
Exhibit 99.1
 
news
 
     
Release Date: April 30, 2008
Contact:
Peter J. Rogers, Jr.
   
Executive Vice President, Investor Relations
 
 
443-285-8059
 
 
progers@micros.com


MICROS REPORTS FISCAL 2008 THIRD QUARTER RESULTS
RECORD THIRD QUARTER 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 third quarter ended March 31, 2008.

  FINANCIAL HIGHLIGHTS
 
 
·
On February 5, 2008, the Company effected a two-for-one stock split of the Company’s common stock in the form of a stock dividend of one share for each share held by shareholders on record as of January 22, 2008. Earnings per share (EPS) below reflect the two-for-one stock split.

 
·
Revenue for the quarter was $237.2 million, an increase of $36.6 million, or 18.3%, over the same period last year.

 
·
Revenue for the nine-month period was $697.6 million, an increase of $133.5 million, or 23.7% over the same period last year.

 
·
GAAP net income for the quarter was $25.1 million, an increase of $5.7 million, or 29.3%, over the same period last year. 

 
·
GAAP net income for the nine-month period was $70.5 million, an increase of $18.0 million, or 34.2%, over the same period last year. GAAP diluted EPS, was $0.30 per share, an increase of $0.07, or 30.4%, over the same period last year.

 
·
GAAP diluted EPS for the nine-month period was $0.84, an increase of $0.20, or 31.3%, 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 $28.0 million, an increase of $5.6 million, or 25.1%, over the year ago period.

 
-
Non-GAAP net income for the nine-month period was $80.7 million, an increase of $20.8 million, or 34.7%, over the year ago period.

 
-
Non-GAAP diluted EPS for the quarter was $0.34, an increase of $0.07, or 25.9%, over the year ago period.
 


 
 
-
Non-GAAP diluted EPS for the nine-month period was $0.97, an increase of $0.24, or 32.9%, over the year ago period.

 
·
MICROS’s financial results were Company records for the third fiscal quarter.
 
Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are pleased with the financial results for the third quarter and the first nine months of our fiscal year as demand for our products and services remained strong. We look forward to the fourth quarter and beyond as we continue certain large deployments and prepare for the release of new, innovative products.”

Revenue guidance for the fiscal year 2008 ending June 30, 2008 is projected to be more than $930.0 million. This guidance is an increase from the August 2007 revenue guidance of $910.0 million to $915.0 million. Earnings guidance for the fiscal year 2008 ending June 30, 2008 is for non-GAAP net income of at least $111.0 million, excluding the projected share-based payment charge, or non-GAAP earnings per diluted share of $1.32. Guidance for GAAP net income is at least $97.5 million, or earnings per diluted share of $1.16.

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 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 April 30, 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.
 

 
news
     
Release Date: April 30, 2008
Contact:
Peter J. Rogers, Jr.
   
EVP, Investor Relations
 
 
443-285-8059

MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
 
   
Third quarter ended
 
Nine months ended
 
   
March 31,
 
March 31,
 
   
2008
 
2007
 
2008
 
2007
 
Revenue:
                         
Hardware
 
$
65,289
 
$
58,541
 
$
197,384
 
$
168,144
 
Software
   
37,910
   
34,032
   
113,278
   
94,540
 
Service
   
133,988
   
107,983
   
386,958
   
301,448
 
Total revenue
   
237,187
   
200,556
   
697,620
   
564,132
 
                           
Cost of sales:
                         
Hardware
   
42,882
   
37,745
   
127,105
   
107,981
 
Software
   
7,648
   
7,597
   
25,671
   
21,593
 
Service
   
62,398
   
50,199
   
180,783
   
142,020
 
Total cost of sales
   
112,928
   
95,541
   
333,559
   
271,594
 
                           
Gross margin
   
124,259
   
105,015
   
364,061
   
292,538
 
                           
Selling, general and administrative expenses
   
72,465
   
62,316
   
213,948
   
177,773
 
Research and development expenses
   
10,139
   
8,761
   
28,675
   
23,412
 
Depreciation and amortization
   
3,280
   
2,961
   
10,755
   
9,122
 
Stock option expense (*)
   
3,616
   
3,763
   
13,444
   
9,273
 
Total operating expenses
   
89,500
   
77,801
   
266,822
   
219,580
 
                           
Income from operations
   
34,759
   
27,214
   
97,239
   
72,958
 
                           
Non-operating income, net
   
3,329
   
2,731
   
10,504
   
7,357
 
                           
Income before taxes, minority interests, and equity in net earnings of affiliates
   
38,088
   
29,945
   
107,743
   
80,315
 
                           
Income tax provision
   
12,378
   
10,156
   
35,862
   
26,893
 
Income before minority interests and equity in net earnings of affiliates
   
25,710
   
19,789
   
71,881
   
53,422
 
Minority interests and equity in net earnings of affiliates
   
(564
)
 
(339
)
 
(1,342
)
 
(844
)
                           
Net income
 
$
25,146
 
$
19,450
 
$
70,539
 
$
52,578
 
 
                         
Net income per common share – diluted
 
$
0.30
 
$
0.23
 
$
0.84
 
$
0.64
 
Weighted-average number of shares outstanding -diluted
   
83,174
   
83,347
   
83,532
   
82,391
 
 


Reconciliation of GAAP Net Income and EPS, and Net Income and EPS before share-based payment charge, i.e. stock option expense
Net income
 
$
25,146
 
$
19,450
 
$
70,539
 
$
52,578
 
Add back: Stock option expense (*)
                         
Selling, general and administrative expenses
   
3,373
   
3,581
   
12,645
   
8,851
 
Research and development expenses
   
243
   
182
   
799
   
422
 
Total stock option expense
   
3,616
   
3,763
   
13,444
   
9,273
 
                           
Subtract: Total tax effect on stock option expense
   
801
   
867
   
3,315
   
1,981
 
Net income (before share-based payment charge)
 
$
27,961
 
$
22,346
 
$
80,668
 
$
59,870
 
                           
                           
Net income per common share-diluted
(before share-based payment charge):
 
$
0.34
 
$
0.27
 
$
0.97
 
$
0.73
 
   
 
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: April 30, 2008
Contact:
Peter J. Rogers, Jr.
   
EVP, Investor Relations
 
 
443-285-8059
 
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands)
 
   
March 31,
 
June 30,
 
 
 
2008
 
2007
 
ASSETS
             
Current assets:
             
Cash and cash equivalents
 
$
374,802
 
$
242,702
 
Short-term investments
   
0
   
86,950
 
Accounts receivable, net
   
193,124
   
180,203
 
Inventory, net
   
61,475
   
47,790
 
Deferred income taxes
   
17,513
   
16,683
 
Prepaid expenses and other current assets
   
32,910
   
27,650
 
Total current assets
   
679,824
   
601,978
 
               
Investment, non-current
   
69,650
   
0
 
Property, plant and equipment, net
   
29,053
   
27,955
 
Deferred income taxes, non-current
   
22,831
   
23,145
 
Goodwill
   
156,319
   
138,332
 
Intangible assets, net
   
16,400
   
14,509
 
Purchased and internally developed software costs, net
   
33,519
   
36,296
 
Other assets
   
6,929
   
4,541
 
Total assets
 
$
1,014,525
 
$
846,756
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
             
Current liabilities:
             
Bank lines of credit
 
$
1,053
 
$
2,308
 
Accounts payable
   
49,644
   
43,126
 
Accrued expenses and other current liabilities
   
127,431
   
117,142
 
Income taxes payable
   
1,588
   
8,094
 
Deferred service revenue
   
122,220
   
86,742
 
Total current liabilities
   
301,936
   
257,412
 
               
Income taxes payable, non-current
   
16,665
   
0
 
Deferred income taxes, non-current
   
15,419
   
15,934
 
Other non-current liabilities
   
18,362
   
17,554
 
Total liabilities
   
352,382
   
290,900
 
               
Minority interests and minority ownership put arrangement
   
7,103
   
4,723
 
Commitments and contingencies
             
               
Shareholders’ equity:
             
Common stock
   
510
   
507
 
Capital in excess of par
   
147,843
   
149,089
 
Retained earnings
   
450,197
   
382,785
 
Accumulated other comprehensive income
   
56,490
   
18,752
 
Total shareholders’ equity
   
655,040
   
551,133
 
               
Total liabilities and shareholders’ equity
 
$
1,014,525
 
$
846,756