Unassociated Document

News
Release Date: April 28 2011	Contact:	Peter J. Rogers, Jr.
		Executive Vice President, Investor Relations
		443-285-8059 progers@micros.com

MICROS REPORTS FISCAL 2011 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 2011 third quarter ended March 31, 2011.

FINANCIAL HIGHLIGHTS

Revenue for the quarter was $253.2 million, an increase of $24.1 million, or 10.5% over the same period last year.

Revenue for the nine-month period was $733.7 million, an increase of $67.6 million, or 10.2% over the same period last year.

GAAP net income for the quarter was $38.6 million, an increase of $8.4 million, or 27.8% over the same period last year. GAAP diluted earnings per share (EPS) was $0.47, an increase of $0.10, or 27.0% over the same period last year.

GAAP net income for the nine-month period was $102.5 million, an increase of $22.1 million, or 27.4% over the same period last year. GAAP diluted EPS was $1.24, an increase of $0.25, or 25.3% over the year ago same period.

Non-GAAP financial results, excluding the effect of charges for stock options, an impairment charge for auction rate securities and a charge for a lawsuit are as follows:

Non-GAAP net income for the quarter was $40.3 million, an increase of $8.6 million, or 27.0% over the same period last year.

Non-GAAP net income for the nine-month period was $110.6 million, an increase of $23.2 million, or 26.5% over the year ago same period.

Non-GAAP diluted EPS for the quarter was $0.49, an increase of $0.10, or 25.6% over the year ago same period.

Non-GAAP diluted EPS for the nine-month period was $1.34, an increase of $0.26, or 24.1% over the year ago same period.

MICROS’s revenue, net income and EPS results were Company records for a third fiscal quarter.

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Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are very pleased with our record financial results for the quarter and year-to-date. We look forward to a strong fourth quarter and a successful conclusion to our fiscal year 2011.”

MICROS’s financial guidance for fiscal year 2011 for revenue remains between $1 billion and $1.005 billion while the net income guidance (Non-GAAP) is increased to between $151.0 million and $152.0 million, up from the previous guidance of $145.0 million to $147.0 million.

MICROS’s stock is listed on NASDAQ OMX’s Global Select 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 April 28, 2011. 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 443-285-8112 or at MICROS’s website at http://www.micros.com.

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News
Release Date: April 28, 2011	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					Nine Months Ended
	March 31,					March 31,
	2011			2010		2011			2010
Revenue:
Hardware	$	49,901		$	47,207	$	142,008		$	136,306
Software		31,075			29,525		92,043			84,716
Service		172,217			152,322		499,673			445,080
Total revenue		253,193			229,054		733,724			666,102

Cost of sales:
Hardware		31,827			29,999		93,135			88,415
Software		5,288			6,102		16,034			18,534
Service		74,675			68,608		219,299			193,933
Stock option expense		25			35		87			105
Total cost of sales		111,815			104,744		328,555			300,987

Gross margin		141,378			124,310		405,169			365,115

Selling, general and administrative expenses		71,739			66,085		202,282			195,496
Research and development expenses		11,649			10,342		33,116			30,770
Depreciation and amortization		3,548			4,674		11,911			12,835
Litigation reserve		0			0		3,000			0
Stock option expense		2,536			2,340		9,434			9,699
Total operating expenses		89,472			83,441		259,743			248,800

Income from operations		51,906			40,869		145,426			116,315
Non-operating income (expense):
Interest income, net		1,013			847		3,465			2,722
Interest expense - litigation reserve		-			-		(360	)		-
Change in credit based impairment, net of realized loss on redemption		-			-		19			(387	)
Other non-operating (expense) income, net		(337	)		524		(732	)		90
Total non-operating income, net		676			1,371		2,392			2,425

Income before taxes		52,582			42,240		147,818			118,740
Income tax provision		13,724			12,123		44,766			37,593
Net income		38,858			30,117		103,052			81,147
Less: Net income attributable to noncontrolling interest		(279	)		81		(529	)		(674	)

Net Income attributable to MICROS Systems, Inc. (GAAP)	$	38,579		$	30,198	$	102,523		$	80,473

Net Income per diluted common share attributable to MICROS Systems, Inc.	$	0.47		$	0.37	$	1.24		$	0.99
Weighted-average number of shares outstanding - diluted		82,913			81,338		82,562			81,299

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.	$	38,579	$	30,198	$	102,523		$	80,473
Add back:
Stock option expense
Selling, general and administrative expenses		2,419		2,232		9,066			9,300
Research and development expenses		117		108		368			399
Cost of sales		25		35		87			105
		2,561		2,375		9,521			9,804
Litigation reserve, including accrued interest expense		-		-		3,360			-
Change in credit based impairment, net of realized loss on redemption		-		-		(19	)		387
Total add back		2,561		2,375		12,862			10,191

Subtract tax effect on:
Stock option expense		802		817		3,457			3,222
Litigation reserve, including accrued interest expense		-		-		1,280			-
Non-GAAP Net Income attributable to MICROS Systems, Inc.	$	40,338	$	31,756	$	110,648		$	87,442

Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.	$	0.49	$	0.39	$	1.34		$	1.08

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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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	March 31, 2011		June 30, 2010
ASSETS
Current assets:
Cash and cash equivalents and short-term investments	$	749,182	$	545,298
Accounts receivable, net		175,023		153,066
Inventory, net		35,674		35,103
Deferred income taxes		21,375		19,624
Prepaid expenses and other current assets		30,922		27,004
Total current assets		1,012,176		780,095

Long-term investments		53,564		59,884
Property, plant and equipment, net		27,754		27,349
Deferred income taxes, non-current		20,073		13,556
Goodwill		235,620		213,825
Intangible assets, net		19,297		19,590
Purchased and internally developed software costs, net		19,523		17,468
Other assets		7,273		6,524
Total Assets	$	1,395,280	$	1,138,291

LIABILITIES AND EQUITY
Current liabilities:
Bank lines of credit	$	-	$	1,442
Accounts payable		46,753		44,783
Accrued expenses and other current liabilities		149,683		135,469
Income taxes payable		5,759		5,856
Deferred revenue		163,206		124,498
Total current liabilities		365,401		312,048

Income taxes payable, non-current		26,009		22,737
Deferred income taxes, non-current		5,985		2,590
Other non-current liabilities		14,408		11,304
Total liabilities		411,803		348,679

Commitments and contingencies

Equity:
MICROS Systems, Inc. shareholders’ equity:
Common stock		2,027		2,001
Capital in excess of par		145,558		117,462
Retained earnings		792,303		689,750
Accumulated other comprehensive income (loss)		37,178		(25,833	)
Total MICROS Systems, Inc. shareholders’ equity		977,066		783,380
Noncontrolling interest		6,411		6,232
Total Equity		983,477		789,612

Total Liabilities and Equity	$	1,395,280	$	1,138,291