EX-99.1 2 ms5613ex991.htm EXHIBIT 99.1

Exhibit 99.1

News

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Release Date: April 27, 2006	Contacts:	Peter J. Rogers, Jr.
		Senior Vice President, Investor Relations
		MICROS Systems, Inc.
		443-285-8059
		progers@micros.com

MICROS REPORTS FISCAL 2006 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 2006 third quarter ended March 31, 2006.

	FINANCIAL HIGHLIGHTS

	-Commencing the first quarter of fiscal year 2006, MICROS implemented the Statement of Financial Accounting Standard No. 123(R) (“FASB 123R”), “Share-based Payments,” which became effective July 1, 2005. The statement requires companies to expense the fair value of grants made under stock option programs over the vesting period of the options. The expense is a non-cash transaction. The Company adopted the “Modified Prospective Application” transition method that does not result in the restatement of previously issued financial statements. MICROS will report its net income and earnings per share during fiscal year 2006 on both Generally Accepted Accounting Principles (“GAAP”) (which includes the share-based payment charge, which represents the non-cash stock option expense) and non-GAAP (which excludes the share-based payment charge, which represents the non-cash stock option expense) bases in order to facilitate analysis of the business and meaningful period-to-period comparisons.

	-Revenue for the quarter was $171.1 million, an increase of $17.8 million, or 11.6%, over the same period last year.

	-GAAP net income for the quarter was $15.6 million. GAAP net income for the nine-month period was $42.2 million.

	-GAAP EPS for the quarter, per diluted share, was $0.38. GAAP EPS for the nine-month period, per diluted share, was $1.04.

	-Net income for the quarter, before the share-based payment charge, a non-GAAP measure, was $17.8 million, an increase of $3.6 million, or 25.5% over the year ago period. Net income for the nine-month period, before the share based payment charge, was $47.2 million, an increase of $11.6 million, or 32.6% over the year ago period.

	-EPS for the quarter, per diluted share, before the share-based payment charge, a non-GAAP measure, was $0.44, an increase of $0.09, or 25.7% over year ago period. EPS for the nine-month period, per diluted share, before the share-based payment charge, was $1.16, an increase of $0.26, or 28.9% over the year ago period.

	-MICROS’s financial results were Company records for the third fiscal quarter.

Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are pleased with our execution and the number of new customer contracts signed across all segments in the quarter. We look forward to a strong fourth quarter as we aim for a record year in revenue and earnings.”

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MICROS’s guidance for its fiscal 2006 fourth quarter ending June 30, 2006 is for revenue between $180.0 million and $185.0 million, and non-GAAP net income, excluding the currently projected share-based payment charge for the fourth fiscal quarter, between $20.5 million and $21.2 million. Guidance for GAAP net income is between $18.8 million and $19.5 million.

Guidance for the fiscal 2006 year ending June 30, 2006 has been increased for revenue to be between $667.0 million and $672.0 million and increased for non-GAAP net income, excluding the currently projected share-based payment charge for the fiscal year, to be between $67.7 million and $68.4 million, or non-GAAP earnings per diluted share between $1.66 and $1.68. Guidance for GAAP net income has been increased to be between $60.6 million and $61.3 million, or earnings per diluted share of $1.50 to $1.51.

To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents MICROS’s net income and earnings per diluted share, before the share-based payment charge, which is the non-cash stock option expense. This non-GAAP presentation of net income and earnings per share is provided to enhance the understanding of the Company’s historical financial performance and comparability between periods. The Company believes this presentation provides useful information.

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. An example of a forward looking statement includes the statements in the paragraphs where MICROS provides guidance for its fiscal 2006 fourth quarter ending June 30, 2006, and its fiscal 2006 year ending June 30, 2006, and Mr. Giannopoulos’s quote. 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 27, 2006. 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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Release Date: April 27, 2006	Contacts:	Peter J. Rogers, Jr.
		SVP, Investor Relations
		443-285-8059

MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)

Third Quarter Ended March 31,

Nine-Months Ended March 31,

2006

2005

2006

2005

Revenue:

Hardware

56,087

49,871

152,585

131,804

Software

28,788

28,762

85,045

75,183

Service

86,266

74,719

249,493

218,257

Total revenue

171,141

153,352

487,123

425,244

Cost of sales:

Hardware

38,234

32,628

103,371

88,220

Software

6,051

6,704

18,458

17,965

Service (*)

41,773

36,226

119,978

105,040

Total cost of sales

86,058

75,558

241,807

211,225

Gross margin

85,083

77,794

245,316

214,019

Selling, general and administrative expenses

51,834

48,540

151,492

134,397

Research and development expenses

6,475

7,201

19,162

20,864

Depreciation and amortization

2,450

2,681

7,557

7,627

Stock option expense (*)

2,402

—

6,502

—

Total operating expenses

63,161

58,422

184,713

162,888

Income from operations

21,922

19,372

60,603

51,131

Non-operating income (expense), net

1,430

(254

)

2,608

1,081

Income before taxes, minority interests, and equity in net earnings of affiliates

23,352

19,118

63,211

52,212

Income tax provision

7,589

4,777

20,544

16,029

Income before minority interests and equity in net earnings of affiliates

15,763

14,341

42,667

36,183

Minority interests and equity in net earnings of affiliates

(169

)

(163

)

(517

)

(591

)

Net income (GAAP)

15,594

14,178

42,150

35,592

Net income per common share – diluted (GAAP)

0.38

0.35

1.04

0.90

Weighted-average number of shares outstanding – diluted

40,730

40,038

40,648

39,503

*Reconciliation of GAAP Net Income and EPS, and Net Income and EPS before share-based payment charge, i.e. stock option expense*
Net income (GAAP)	$	15,594	$	14,178	$	42,150	$	35,592

*Add back:*
*() Stock option expense**
COGS - service		25				25

Selling, general and administrative expenses		2,329		—		6,359		—
Research and development expenses		73		—		143		—

Stock option expense included in operating expenses		2,402		—		6,502		—

Total stock option expense		2,427		—		6,527		—

*Subtract:*
Total tax effect on stock option expense		227				1,472

Net income (before share-based payment charge)	$	17,794	$	14,178	$	47,205	$	35,592

Net income per common share-diluted (before share-based payment charge)	$	0.44	$	0.35	$	1.16	$	0.90

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Release Date: April 27, 2006	Contacts:	Peter J. Rogers, Jr.
		SVP, Investor Relations
		443-285-8059

MICROS SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited - in thousands)

	March 31, 2006		June 30, 2005

ASSETS
Current assets:
Cash and cash equivalents	$	182,998	$	153,521
Accounts receivable, net		150,077		131,423
Inventories, net		45,153		42,664
Deferred income taxes		13,111		10,883
Prepaid expenses and other current assets		27,074		28,934

Total current assets		418,413		367,425
Property, plant and equipment, net		23,382		21,308
Deferred income taxes, non-current		13,679		18,195
Goodwill		104,680		86,781
Intangible assets, net		10,764		10,958
Purchased and internally developed software costs, net		37,071		40,160
Other assets		2,525		2,401

Total assets	$	610,514	$	547,228

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank lines of credit	$	1,728	$	2,387
Accounts payable		37,433		38,253
Accrued expenses and other current liabilities		81,256		74,543
Current portion of capital lease obligations		142		162
Income taxes payable		7,991		3,260
Deferred income taxes		362		362
Deferred service revenue		74,070		58,022

Total current liabilities		202,982		176,989
Capital lease obligations, net of current portion		361		251
Deferred income taxes, non-current		14,648		16,105
Other non-current liabilities		7,907		5,905
Commitments and contingencies
Minority interests		3,010		2,807
Shareholders’ equity:
Common stock		485		482
Capital in excess of par		94,401		99,990
Retained earnings		281,470		239,320
Accumulated other comprehensive income		5,250		5,379

Total shareholders’ equity		381,606		345,171

Total liabilities and shareholders’ equity	$	610,514	$	547,228

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