EX-99.1 2 v173231_ex99-1.htm
Exhibit 99.1
 
news
Release Date: February 4, 2010
Contact:  Peter J. Rogers, Jr.
 
Executive Vice President, Investor Relations
 
443-285-8059
 
progers@micros.com


MICROS REPORTS FISCAL 2010 SECOND QUARTER RESULTS
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 2010 second quarter ended December 31, 2009.

  FINANCIAL HIGHLIGHTS
 
 
-
Revenue for the quarter was $225.6 million.
 
 
-
Revenue for the six-month period was $437.0 million.
 
 
-
GAAP net income for the quarter was $26.1 million.
 
 
-
GAAP net income for the six-month per was $50.3 million.
 
 
-
GAAP diluted EPS for the quarter was $0.32 per share.
 
 
-
GAAP diluted EPS for the six-month period was $0.62 per share.
 
 
-
Non-GAAP financial results, excluding the effect of charges for stock options and impairment on auction rate securities, are as follows:
 
 
-
Non-GAAP net income for the quarter was $29.0 million.
 
 
-
Non-GAAP net income for the six-month period was $55.7 million.
 
 
-
Non-GAAP diluted EPS for the quarter was $0.36 per share.
 
 
-
Non-GAAP diluted EPS for the six-month period was $0.69 per share.
 
The financial results for the second fiscal quarter exceeded consensus expectations.
 
Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are very pleased with the financial results for the quarter as revenue, net income and earnings per share exceeded expectations.  We are hopeful that business conditions will continue to improve.”

MICROS expects to file its fiscal 2010 second quarter 10-Q on or before February 16, 2010.  The financial statements reported today reflect adjustments necessitated by certain fraudulent activities recently uncovered in our Japanese subsidiary and perpetrated by one employee who is not a member of senior management.  The Company immediately initiated an investigation, which is now substantially complete, and determined that the cumulative income statement effect over the last five fiscal years of this activity is an overstatement of revenue of approximately $6.9 million and pre-tax income of approximately $4.4 million.  The Company does not believe that adjustments to correct information in any prior reporting period would be material. The condensed consolidated statements of operations and cash flows reported today do not reflect cumulative adjustments, but include adjustments for the periods presented.  To the extent that prior period information is included in future SEC filings and in future public statements, the information will reflect the adjustments relevant to those prior periods.
 
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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 February 4, 2010.  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 4, 2010
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)
 
   
Three Months Ended
   
Six Months Ended
 
   
December 31,
   
December 31,
 
   
2009
   
2008
   
2009
   
2008
 
Revenue:
                       
Hardware
  $ 45,793     $ 55,646     $ 89,099     $ 119,118  
Software
    30,499       37,679       55,192       75,177  
Service
    149,355       143,184       292,757       285,846  
Total revenue
    225,647       236,509       437,048       480,141  
                                 
Cost of sales:
                               
Hardware
    30,364       34,326       58,416       77,179  
Software
    7,045       6,679       12,432       13,737  
Service
    63,259       69,530       125,396       137,313  
Total cost of sales
    100,668       110,535       196,244       228,229  
                                 
Gross margin
    124,979       125,974       240,804       251,912  
                                 
Selling, general and administrative expenses
    67,124       68,848       129,339       142,696  
Research and development expenses
    9,560       10,412       20,430       20,674  
Depreciation and amortization
    4,319       4,291       8,161       8,378  
Stock option expense
    4,378       4,099       7,429       7,832  
Total operating expenses
    85,381       87,650       165,359       179,580  
                                 
Income from operations
    39,598       38,324       75,445       72,332  
Non-operating income (expense):
                               
Interest income (expense), net
    825       2,429       1,877       5,538  
Credit based impairment charge
    -       -       (387 )     -  
Other non-operating (expense) income, net
    (427 )     (267 )     (435 )     419  
Total non-operating income, net
    398       2,162       1,055       5,957  
                                 
Income before taxes
    39,996       40,486       76,500       78,289  
Income tax provision
    13,334       14,074       25,471       27,130  
Net income
    26,662       26,412       51,029       51,159  
Less:  Net income attributable to noncontrolling interest
    (532 )     (234 )     (755 )     (683 )
                                 
Net Income attributable to MICROS Systems, Inc. (GAAP)
  $ 26,130     $ 26,178     $ 50,274     $ 50,476  
                                 
Net Income per Diluted Common Share attributable to
MICROS Systems, Inc. common shareholder
  $ 0.32     $ 0.32     $ 0.62     $ 0.61  
Weighted-average number of shares outstanding - diluted
    81,234       81,202       81,283       81,691  
 
 
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.
  $ 26,130     $ 26,178     $ 50,274     $ 50,476
Add back:
                             
  Stock option expense
                             
        Selling, general and administrative expenses
    4,235       3,886       7,139       7,411
        Research and development expenses
    143       213       290       421
      4,378       4,099       7,429       7,832
  Credit based impairment charge
    -       -       387       -
      4,378       4,099       7,816       7,832
                               
Subtract:  Tax effect on Stock option expense
    1,464       978       2,406       1,819
Non-GAAP Net Income attributable to MICROS Systems, Inc.
  $ 29,044     $ 29,299     $ 55,684     $ 56,489
                               
Non-GAAP Net Income per Diluted Common Share
attributable to MICROS Systems, Inc.
  $ 0.36     $ 0.36     $ 0.69     $ 0.69
                               
 
 
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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, limitingthe usefulness of those measures for comparative purposes.
 
 
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News
 
Release Date: February 4, 2010
Contact:
Peter J. Rogers, Jr
   
EVP, Investor Relations
   
443-285-8059
 
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands)
 
   
December 31,
2009
   
June 30,
2009
 
ASSETS
           
Current assets:
           
     Cash and cash equivalents and short-term investments
  $ 466,101     $ 438,936  
     Accounts receivable, net
    148,856       155,211  
     Inventory, net
    36,994       39,783  
     Deferred income taxes
    21,979       19,438  
     Prepaid expenses and other current assets
    31,687       27,238  
           Total current assets
    705,617       680,606  
                 
Long-term investments
    64,716       57,823  
Property, plant and equipment, net
    30,547       30,520  
Deferred income taxes, non-current
    14,109       11,375  
Goodwill
    216,305       190,739  
Intangible assets, net
    23,259       17,709  
Purchased and internally developed software costs, net
    22,388       25,749  
Other assets
    6,251       6,345  
Total Assets
  $ 1,083,192     $ 1,020,866  
                 
LIABILITIES AND EQUITY
               
Current liabilities:
               
     Bank lines of credit
  $ 1,370     $ 1,090  
     Accounts payable
    37,571       38,445  
     Accrued expenses and other current liabilities
    112,596       104,821  
     Income taxes payable
    8,340       7,432  
     Deferred revenue
    118,408       112,146  
         Total current liabilities
    278,285       263,934  
                 
Income taxes payable, non-current
    21,359       19,611  
Deferred income taxes, non-current
    2,288       1,752  
Other non-current liabilities
    11,950       10,539  
         Total liabilities
    313,882       295,836  
                 
Commitments and contingencies
               
                 
Equity:
               
  MICROS Systems, Inc. shareholders’ equity:
               
     Common stock
    498       502  
     Capital in excess of par
    109,378       127,145  
     Retained earnings
    625,602       575,095  
     Accumulated other comprehensive income
    27,104       16,254  
          Total MICROS Systems, Inc. shareholders’ equity
    762,582       718,996  
  Noncontrolling interest
    6,728       6,034  
Total Equity
    769,310       725,030  
                 
Total Liabilities and Equity
  $ 1,083,192     $ 1,020,866  
 
 
 
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