Exhibit 99
| Release Date: May 1, 2014 | Contact: Peter J. Rogers, Jr. |
| DRAFT #2 4.30.14 | Executive Vice President, Investor Relations |
| 443-285-8059 |
MICROS REPORTS FISCAL 2014 THIRD QUARTER RESULTS
RECORD QUARTERLY REVENUE, NET INCOME AND EPS
Columbia, MD - May 1, 2014— MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2014 third quarter ended March 31, 2014.
FINANCIAL HIGHLIGHTS
| · | Revenue for the quarter was $349.0 million, an increase of $33.9 million, or 10.7%, versus the year ago period. |
| · | Revenue for the nine-month period was $1.009.3 billion, an increase of $69.8 million, or 7.4%, versus the year ago period. |
| · | GAAP net income for the quarter was $50.3 million, an increase of $6.0 million, or 13.6.%, versus the year ago period. |
| · | GAAP net income for the nine-month period was $126.0 million, a decrease of $3.4 million, or 2.7%, versus the year ago period. |
| · | GAAP diluted earnings per share (EPS) for the quarter was $0.66 per share, an increase of $0.11, or 20.0%, versus the year ago period. |
| · | GAAP diluted EPS for the nine-month period was $1.63, an increase of $0.04, or 2.5%, versus the year ago period. |
| · | Non-GAAP financial results, excluding the effect of charges for stock options, a litigation charge and accrued interest, amortization of Torex intangibles, restructuring of Torex, and gain on the sale and settlement of auction rate securities, are as follows: |
| - | Non-GAAP net income for the quarter was $55.0 million, an increase of $5.3 million, or 10.8%, versus the year ago period. |
| - | Non-GAAP net income for the nine-month period was $141.8 million, a decrease of $1.2 million, or 0.8%, versus the year ago period. |
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| - | Non-GAAP diluted EPS for the quarter was $0.72, an increase of $0.10, or 16.1%, versus the year ago period. |
| - | Non-GAAP diluted EPS for the nine-month period was $1.84, an increase of $0.08, or 4.5%, versus the year ago period. |
MICROS’s quarterly revenue, GAAP net income and EPS (GAAP and Non-GAAP) were Company records.
Peter A. Altabef, MICROS’s President and CEO, stated, “We are pleased with the strong revenue growth and profit performance this quarter. We are encouraged by an improved demand environment for our solutions from current and new clients.“
MICROS’s financial guidance for fiscal 2014 is for revenue between $1.360 billion and $1.385 billion and Non-GAAP EPS from $2.52 to $2.57. The guidance reflects an increase in the ranges provided in January 2014. At that time, revenue guidance for fiscal 2014 was for revenue between $1.320 billion and $1.345 billion, and Non-GAAP EPS between $2.46 and $2.51.
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; 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 May 1, 2014. 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 |  | |
| 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, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Revenue: | ||||||||||||||||
| Hardware | $ | 78,621 | $ | 64,523 | $ | 216,249 | $ | 195,527 | ||||||||
| Software | 39,242 | 36,821 | 118,361 | 106,346 | ||||||||||||
| Service | 231,105 | 213,761 | 674,642 | 637,603 | ||||||||||||
| Total revenue | 348,968 | 315,105 | 1,009,252 | 939,476 | ||||||||||||
| Cost of sales: | ||||||||||||||||
| Hardware | 50,476 | 41,514 | 139,394 | 127,867 | ||||||||||||
| Software | 6,939 | 5,813 | 19,519 | 16,434 | ||||||||||||
| Service | 109,832 | 102,201 | 323,886 | 304,064 | ||||||||||||
| Stock option expense | 77 | 89 | 266 | 244 | ||||||||||||
| Total cost of sales | 167,324 | 149,617 | 483,065 | 448,609 | ||||||||||||
| Gross margin | 181,644 | 165,488 | 526,187 | 490,867 | ||||||||||||
| Selling, general and administrative expenses | 87,299 | 78,254 | 250,829 | 230,854 | ||||||||||||
| Research and development expenses | 18,970 | 17,970 | 59,287 | 51,860 | ||||||||||||
| Depreciation and amortization | 4,597 | 4,008 | 13,658 | 12,332 | ||||||||||||
| Stock option expense | 5,577 | 4,651 | 16,128 | 16,022 | ||||||||||||
| Torex amortization expense | 876 | 1,694 | 2,593 | 4,416 | ||||||||||||
| Torex restructuring charge | 0 | 760 | 216 | 2,453 | ||||||||||||
| Litigation charge | 0 | 0 | 2,800 | 0 | ||||||||||||
| Total operating expenses | 117,319 | 107,337 | 345,511 | 317,937 | ||||||||||||
| Income from operations | 64,325 | 58,151 | 180,676 | 172,930 | ||||||||||||
| Non-operating income (expense): | ||||||||||||||||
| Interest income, net | 877 | 919 | 2,543 | 3,223 | ||||||||||||
| Interest expense - litigation charge | 0 | 0 | (900 | ) | 0 | |||||||||||
| Gain on settlement/sale - auction rate securities | 0 | 0 | 338 | 3,494 | ||||||||||||
| Other non-operating (expense) income, net | (163 | ) | 645 | (546 | ) | (319 | ) | |||||||||
| Total non-operating income , net | 714 | 1,564 | 1,435 | 6,398 | ||||||||||||
| Income before taxes | 65,039 | 59,715 | 182,111 | 179,328 | ||||||||||||
| Income tax provision | 14,896 | 15,370 | 56,080 | 49,627 | ||||||||||||
| Net income | 50,143 | 44,345 | 126,031 | 129,701 | ||||||||||||
| Less: Net loss (income) attributable to noncontrolling interest | 151 | (81 | ) | (51 | ) | (287 | ) | |||||||||
| Net Income attributable to MICROS Systems, Inc. (GAAP) | $ | 50,294 | $ | 44,264 | $ | 125,980 | $ | 129,414 | ||||||||
| Net Income per diluted common share attributable to MICROS Systems, Inc. | $ | 0.66 | $ | 0.55 | $ | 1.63 | $ | 1.59 | ||||||||
| Weighted-average number of shares outstanding - diluted | 76,771 | 80,502 | 77,081 | 81,272 | ||||||||||||
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. | $ | 50,294 | $ | 44,264 | $ | 125,980 | $ | 129,414 | ||||||||
| Add back: | ||||||||||||||||
| Stock option expense | ||||||||||||||||
| Selling, general and administrative expenses | 5,037 | 4,161 | 14,557 | 14,766 | ||||||||||||
| Research and development expenses | 540 | 490 | 1,571 | 1,256 | ||||||||||||
| Cost of sales | 77 | 89 | 266 | 244 | ||||||||||||
| 5,654 | 4,740 | 16,394 | 16,266 | |||||||||||||
| Litigation charge, including accrued interest expense | 0 | 0 | 3,700 | 0 | ||||||||||||
| Torex amortization expense | 876 | 1,694 | 2,593 | 4,416 | ||||||||||||
| Torex restructuring charge | 0 | 760 | 216 | 2,453 | ||||||||||||
| Gain on settlement/sale - auction rate securities | 0 | 0 | (338 | ) | (3,494 | ) | ||||||||||
| Total add back | 6,530 | 7,194 | 22,565 | 19,641 | ||||||||||||
| Subtract tax effect on: | ||||||||||||||||
| Stock option expense | 1,841 | 1,570 | 5,215 | 5,225 | ||||||||||||
| Litigation charge, including accrued interest expense | 0 | 0 | 1,410 | 0 | ||||||||||||
| Torex amortization expense | 23 | 59 | 67 | 177 | ||||||||||||
| Torex restructuring charge | 0 | 208 | 49 | 641 | ||||||||||||
| Non-GAAP Net Income attributable to MICROS Systems, Inc. | $ | 54,960 | $ | 49,621 | $ | 141,804 | $ | 143,012 | ||||||||
| Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc. | $ | 0.72 | $ | 0.62 | $ | 1.84 | $ | 1.76 |
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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, limiting the usefulness of those measures for comparative purposes. |
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| News | | |
| Contact: | Peter J. Rogers, Jr | |
| EVP, Investor Relations | ||
| 443-285-8059 | ||
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands)
| March 31, 2014 | June 30, 2013 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents and short-term investments | $ | 658,377 | $ | 634,069 | ||||
| Accounts receivable, net | 265,069 | 228,455 | ||||||
| Inventory | 63,597 | 49,273 | ||||||
| Income taxes receivable | 3,646 | 12,771 | ||||||
| Deferred income taxes | 14,685 | 15,022 | ||||||
| Prepaid expenses and other current assets | 51,689 | 44,648 | ||||||
| Total current assets | 1,057,063 | 984,238 | ||||||
| Property, plant and equipment, net | 58,192 | 44,127 | ||||||
| Deferred income taxes, non-current | 50,278 | 50,186 | ||||||
| Goodwill | 454,086 | 432,950 | ||||||
| Intangible assets, net | 36,068 | 37,754 | ||||||
| Purchased and internally developed software costs, net | 37,987 | 32,543 | ||||||
| Other assets | 9,233 | 7,240 | ||||||
| Total Assets | $ | 1,702,907 | $ | 1,589,038 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Bank lines of credit | $ | 0 | $ | 1,757 | ||||
| Accounts payable | 74,347 | 73,099 | ||||||
| Accrued expenses and other current liabilities | 157,361 | 155,491 | ||||||
| Income taxes payable | 9,725 | 11,002 | ||||||
| Deferred revenue | 230,083 | 177,236 | ||||||
| Total current liabilities | 471,516 | 418,585 | ||||||
| Income taxes payable, non-current | 42,467 | 35,019 | ||||||
| Deferred income taxes, non-current | 470 | 1,157 | ||||||
| Other non-current liabilities | 14,705 | 16,007 | ||||||
| Total liabilities | 529,158 | 470,768 | ||||||
| Commitments and contingencies | ||||||||
| Equity: | ||||||||
| MICROS Systems, Inc. stockholders’ equity: | ||||||||
| Common stock | 1,871 | 1,918 | ||||||
| Retained earnings | 1,152,756 | 1,136,763 | ||||||
| Accumulated other comprehensive income (loss) | 15,946 | (23,625 | ) | |||||
| Total MICROS Systems, Inc. stockholders’ equity | 1,170,573 | 1,115,056 | ||||||
| Noncontrolling interest | 3,176 | 3,214 | ||||||
| Total Equity | 1,173,749 | 1,118,270 | ||||||
| Total Liabilities and Equity | $ | 1,702,907 | $ | 1,589,038 | ||||
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| News | | |
| Contact: | Peter J. Rogers, Jr | |
| EVP, Investor Relations | ||
| 443-285-8059 | ||
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - in thousands)
| Nine Months Ended | ||||||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 126,031 | $ | 129,701 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 16,251 | 16,748 | ||||||
| Share-based compensation | 16,394 | 16,266 | ||||||
| Amortization of capitalized software | 4,836 | 3,696 | ||||||
| Provision for losses on accounts receivable | 879 | 2,871 | ||||||
| Litigation reserve, including interest expense | 3,700 | 0 | ||||||
| Gain on sales of auction rate securities | 0 | (4,094 | ) | |||||
| Other-than-temporary impairment losses on investments, net | 0 | 600 | ||||||
| Net (gain) loss on disposal of property, plant and equipment | 3 | (48 | ) | |||||
| Changes in operating assets and liabilities (net of impact of acquisitions): | ||||||||
| Increase in accounts receivable | (30,701 | ) | (5,846 | ) | ||||
| Increase in inventory | (13,280 | ) | (9,946 | ) | ||||
| Increase in prepaid expenses and other assets | (6,198 | ) | (7,091 | ) | ||||
| Decrease in accounts payable | (410 | ) | (5,020 | ) | ||||
| Decrease in accrued expenses and other current liabilities | (2,906 | ) | (28,283 | ) | ||||
| Increase (decrease) in income taxes assets and liabilities | 15,366 | (2,089 | ) | |||||
| Increase in deferred revenue | 46,780 | 32,430 | ||||||
| Net cash flows provided by operating activities | 176,745 | 139,895 | ||||||
| Cash flows from investing activities: | ||||||||
| Proceeds from maturities of investments | 168,120 | 24,685 | ||||||
| Proceeds from sales of auction rate securities | 0 | 42,119 | ||||||
| Purchases of investments | (94,374 | ) | (108,423 | ) | ||||
| Purchases of property, plant and equipment | (26,639 | ) | (15,692 | ) | ||||
| Internally developed software costs | (8,415 | ) | (3,398 | ) | ||||
| Other | 189 | (299 | ) | |||||
| Net cash flows provided by (used in) investing activities | 38,881 | (61,008 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Repurchases of common stock | (170,616 | ) | (90,887 | ) | ||||
| Proceeds from stock option exercises | 41,470 | 7,326 | ||||||
| Proceeds from advance on line of credit | 0 | 4,014 | ||||||
| Realized tax benefits from stock option exercises | 2,639 | 3,069 | ||||||
| Principal payments on line of credit | (1,795 | ) | 0 | |||||
| Cash paid for acquisition of non-controlling interest | 0 | (846 | ) | |||||
| Other | (183 | ) | (70 | ) | ||||
| Net cash flows used in financing activities | (128,485 | ) | (77,394 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 9,731 | 1,419 | ||||||
| Net increase in cash and cash equivalents | 96,872 | 2,912 | ||||||
| Cash and cash equivalents at beginning of year | 486,023 | 562,786 | ||||||
| Cash and cash equivalents at end of year | $ | 582,895 | $ | 565,698 | ||||
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