EX-99.1 2 v200314_ex99-1.htm Unassociated Document
Exhibit 99.1
 
News
 
 
Release Date: October 28, 2010                            
Contact:
Peter J. Rogers, Jr.
                                                                               
 
Executive Vice President, Investor Relations
 
 
443-285-8059
progers@micros.com
 
 
MICROS REPORTS FISCAL 2011 FIRST 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 2011 first quarter ended September 30, 2010. 
 
FINANCIAL HIGHLIGHTS
 
-  
Revenue for the quarter was $233.4 million, an increase of $22.0 million, or 10.4%, over the same period last year.
   
-  
GAAP net income for the quarter was $31.6 million, an increase of $7.5 million, or 30.9%, over the same period last year.
   
-  
GAAP diluted earnings per share (EPS) for the quarter was $0.39 per share, an increase of $0.09, or 30% over the same period last year.
   
-  
Non-GAAP financial results for the quarter, excluding the effect of charges for stock options and the redemption of one of our auction rate securities, are as follows:
   
-  
Non-GAAP net income for the quarter was $33.4 million, an increase of $6.7 million, or 25.3%, over the same period last year.
   
-  
Non-GAAP diluted EPS for the quarter was $0.41 per share an increase of $0.08, or 24.2%, over the same period last year.
 
The financial results for the first fiscal quarter exceeded consensus expectations.
Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are very pleased with the results for our fiscal quarter, which included record operating income, net income and EPS for a first fiscal quarter.”
 
MICROS’s financial guidance for fiscal 2011 remains the same as previously provided in August 2010 with revenue between $1.0 billion and $1.005 billion and net income between $140 million and $142 million. 
 
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.
 
Page 1 of 5

 
All information in this release is as of October 28, 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.
 
Page 2 of 5

 
 
News
 
 
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
 
 
Sept. 30,
 
   
2010
   
2009
 
Revenue:
           
  Hardware
  $ 44,266     $ 43,307  
  Software
    27,889       24,692  
  Service
    161,259       143,402  
Total revenue
    233,414       211,401  
                 
Cost of sales:
               
  Hardware
    29,955       28,052  
  Software
    5,826       5,387  
  Service
    71,178       62,136  
  Stock option expense
    35       0  
Total cost of sales
    106,994       95,575  
                 
Gross margin
    126,420       115,826  
                 
  Selling, general and administrative expenses
    62,191       62,217  
  Research and development expenses
    10,661       10,869  
  Depreciation and amortization
    4,118       3,842  
  Stock option expense
    2,610       3,051  
Total operating expenses
    79,580       79,979  
                 
Income from operations
    46,840       35,847  
Non-operating income (expense):
               
   Interest income, net
    1,056       1,051  
  Change in credit based impairment, net of realized loss on redemption
    92       (387 )
  Other non-operating expense, net
    (900 )     (7 )
Total non-operating income, net
    248       657  
                 
Income before taxes
    47,088       36,504  
Income tax provision
    15,393       12,133  
Net income
    31,695       24,371  
Less:  Net income attributable to noncontrolling interest
    (78 )     (224 )
                 
Net Income attributable to MICROS Systems, Inc. (GAAP)
  $ 31,617     $ 24,147  
                 
Net Income per diluted common share attributable to MICROS Systems, Inc.
  $ 0.39     $ 0.30  
Weighted-average number of shares outstanding - diluted
    82,023       81,314  

 
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.
  $ 31,617     $ 24,147  
Add back:
               
  Stock option expense
               
        Selling, general and administrative expenses
    2,484       2,904  
        Research and development expenses
    126       147  
        Cost of sales
    35       -  
      2,645       3,051  
  Change in credit based impairment, net of realized loss on redemption
    (92 )     387  
Total Add back
    2,553       3,438  
                 
Subtract tax effect on stock option expense
    789       942  
Non-GAAP Net Income attributable to MICROS Systems, Inc.
  $ 33,381     $ 26,643  
                 
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.
  $ 0.41     $ 0.33  
                 

Page 3 of 5

 
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. subject to a number of important limitations and should be considered only in conjunction with our consolidated financial statements Instead, they are based on subjective determinations by management designed to supplement our GAAP financial measures.  They are 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.
 
Page 4 of 5

 
News
 
 
Contact:
Peter J. Rogers, Jr.
EVP Investor Relations
443-285-8059
 
MICROS SYSTEMS, INC.
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited - in thousands)
 
             
   
Sept. 30,
2010
   
June 30,
2010
 
ASSETS
           
Current assets:
           
     Cash and cash equivalents and short-term investments
  $ 617,879     $ 545,298  
     Accounts receivable, net
    156,704       153,066  
     Inventory, net
    35,609       35,103  
     Deferred income taxes
    20,092       19,624  
     Prepaid expenses and other current assets
    33,641       27,004  
           Total current assets
    863,925       780,095  
                 
Long-term investments
    63,014       59,884  
Property, plant and equipment, net
    28,424       27,349  
Deferred income taxes, non-current
    13,612       13,556  
Goodwill
    217,721       213,825  
Intangible assets, net
    18,899       19,590  
Purchased and internally developed software costs, net
    17,783       17,468  
Other assets
    6,960       6,524  
Total Assets
  $ 1,230,338     $ 1,138,291  
                 
LIABILITIES AND EQUITY
               
Current liabilities:
               
     Bank lines of credit
  $ -     $ 1,442  
     Accounts payable
    45,306       44,783  
     Accrued expenses and other current liabilities
    119,425       135,469  
     Income taxes payable
    3,468       5,856  
     Deferred revenue
    147,910       124,498  
         Total current liabilities
    316,109        312,048  
                 
Income taxes payable, non-current
    23,439       22,737  
Deferred income taxes, non-current
    2,808       2,590  
Other non-current liabilities
    10,482       11,304  
         Total liabilities
    352,838       348,679  
                 
Commitments and contingencies
               
                 
Equity:
               
  MICROS Systems, Inc. shareholders equity:
               
     Common stock
    2,014       2,001  
     Capital in excess of par
    130,926       117,462  
     Retained earnings
    721,397       689,750  
     Accumulated other comprehensive income
    16,498       (25,833 )
          Total MICROS Systems, Inc. shareholders equity
    870,835       783,380  
  Noncontrolling interest
    6,665       6,232  
Total Equity
    877,500       789,612  
                 
Total Liabilities and Equity
  $ 1,230,338     $ 1,138,291  
 
Page 5 of 5