EX-99.1 2 v138945_ex99-1.htm Unassociated Document
Exhibit 99.1
 
news
Release Date: February 5, 2009
Contact:  Peter J. Rogers, Jr.
 
Executive Vice President, Investor Relations
 
443-285-8059
 
progers@micros.com


MICROS REPORTS FISCAL 2009 SECOND QUARTER RESULTS
RECORD SECOND QUARTER 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 2009 second quarter ended December 31, 2008.

  FINANCIAL HIGHLIGHTS
 
·  
Revenue for the quarter was $237.9 million, a decrease of $6.0 million, or 2.5%, versus the same period last year.
 
·  
Revenue for the six-month period was $482.0 million, an increase of $21.6 million, or 4.7% over the same period last year.
 
·  
GAAP net income for the quarter was $27.1 million, an increase of $3.0 million, or 12.4%, over the same period last year.
 
·  
GAAP net income for the six-month period was $52.0 million, an increase of $6.6 million, or 14.5%, over the same period last year.
 
·  
GAAP diluted EPS for the quarter was $0.33 per share, an increase of $0.04, or 13.8%, over the same period last year.
 
·  
GAAP diluted EPS for the six-month period was $0.63, an increase of $0.09, or 16.7%, 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 $30.2 million, an increase of $1.8 million, or 6.3%, over the year ago period.
 
-  
Non-GAAP net income for the six-month period was $58.0 million, an increase of $5.3 million, or 10.0%, over the year ago period.
 
-  
Non-GAAP diluted EPS for the quarter was $0.37, an increase of $0.03, or 8.8%, over the year ago period.
 
-  
Non-GAAP diluted EPS for the six-month period was $0.71, an increase of $0.08, or 12.7%, over the year ago period.
 
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·  
MICROS’s net income and EPS results were Company records for a second fiscal quarter.
 
Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “To generate record net income and EPS for our second quarter, and positive revenue growth for the first six months of our fiscal year in this challenging economic climate, is very gratifying.”


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, 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 February 5, 2009.  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.
 
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news
Release Date: February 5, 2009
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)
                     
 
   
Second quarter ended
   
Six months ended
 
   
December 31,
   
December 31,
 
   
2008
   
2007
   
2008
   
2007
 
Revenue:
                       
  Hardware
  $ 56,145     $ 67,194     $ 119,839     $ 132,095  
  Software
    38,196       44,517       75,772       75,368  
  Service
    143,593       132,241       286,393       252,971  
Total revenue
    237,934       243,952       482,004       460,434  
                                 
Cost of sales:
                               
  Hardware
    34,756       44,284       77,815       84,223  
  Software
    7,098       9,515       14,398       18,024  
  Service
    69,557       63,591       137,324       118,384  
Total cost of sales
    111,411       117,390       229,537       220,631  
                                 
Gross margin
    126,523       126,562       252,467       239,803  
                                 
Selling, general and administrative expenses
    68,509       74,130       141,785       141,484  
Research and development expenses
    10,411       9,423       20,673       18,536  
Depreciation and amortization
    4,291       3,629       8,378       7,475  
Stock option expense (*)
    4,099       5,983       7,832       9,827  
Total operating expenses
    87,310       93,165       178,668       177,322  
                                 
Income from operations
    39,213       33,397       73,799       62,481  
                                 
Non-operating income, net
    2,163       3,851       5,957       7,174  
                                 
Income before taxes, minority interests, and equity in net earnings of affiliates
    41,376       37,248       79,756       69,655  
                                 
Income tax provision
    14,068       12,627       27,117       23,483  
                                 
Income before minority interests and equity in net earnings of affiliates
    27,308       24,621       52,639       46,172  
Minority interests and equity in net earnings of affiliates
    (234 )     (532 )     (683 )     (779 )
                                 
Net income (GAAP)
  $ 27,074     $ 24,089     $ 51,956     $ 45,393  
                                 
                                 
Net income per common share – diluted
  $ 0.33     $ 0.29     $ 0.63     $ 0.54  
Weighted-average number of shares outstanding -diluted
    81,202       83,917       81,691       83,711  
                                            
Reconciliation of GAAP Net Income and EPS, and Net Income and EPS before share-based payment charge, i.e. stock option expense
  
Net income
  $ 27,074     $ 24,089     $ 51,956     $ 45,393  
Add back:   Stock option expense (*)
                               
        Selling, general and administrative expenses
    3,886       5,730       7,411       9,271  
        Research and development expenses
    213       253       421       556  
     Total stock option expense
    4,099       5,983       7,832       9,827  
                                 
Subtract:   Total tax effect on stock option expense
    978       1,673       1,819       2,513  
Net income (before share-based payment charge)
  $ 30,195     $ 28,399     $ 57,969     $ 52,707  
                                 
Net income per diluted common share, before share-based payment charge (Non-GAAP)
  $ 0.37     $ 0.34     $ 0.71     $ 0.63  
                                           
 
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 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.
 
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news
Release Date: February 5, 2009
Contact: Peter J. Rogers, Jr.
 
EVP, Investor Relations
 
443-285-8059
 
 
MICROS SYSTEMS, INC.
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited - in thousands)
 
             
   
Dec 31,
   
June 30,
 
   
2008
   
2008
 
ASSETS
           
Current assets:
           
     Cash and cash equivalents
  $ 333,160     $ 381,964  
     Accounts receivable, net
    174,809       192,445  
     Inventory, net
    47,966       64,575  
     Deferred income taxes
    20,575       18,724  
     Prepaid expenses and other current assets
    29,224       29,737  
           Total current assets
    605,734       687,445  
                 
Investments, non-current
    57,541       65,216  
Property, plant and equipment, net
    32,189       29,165  
Deferred income taxes, non-current
    5,823       7,108  
Goodwill
    187,800       159,722  
Intangible assets, net
    20,357       16,168  
Purchased and internally developed software costs, net
    29,545       30,846  
Other assets
    7,225       7,336  
Total assets
  $ 946,214     $ 1,003,006  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities:
               
     Bank lines of credit
  $ 1,157     $ 989  
     Accounts payable
    39,467       46,843  
     Accrued expenses and other current liabilities
    111,742       124,913  
     Income taxes payable
    1,888       6,363  
     Deferred revenue
    92,654       115,398  
         Total current liabilities
    246,908       294,506  
                 
Income taxes payable, non-current
    19,142       18,302  
Deferred income taxes, non-current
    2,201       2,181  
Other non-current liabilities
    8,451       8,103  
         Total liabilities
    276,702       323,092  
Minority interests and minority ownership put arrangement
    6,460       6,898  
Commitments and contingencies
               
                 
Shareholders’ equity:
               
     Common stock
    502       506  
     Capital in excess of par
    125,368       131,517  
     Retained earnings
    532,375       480,777  
     Accumulated other comprehensive income
    4,807       60,216  
          Total shareholders’ equity
    663,052       673,016  
                 
Total liabilities and shareholders’ equity
  $ 946,214     $ 1,003,006  

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