8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: August 29, 2006
(Date of earliest event reported)

MICROS SYSTEMS, INC
(Exact name of Registrant as specified in its charter)
MARYLAND	000-09993	52-1101488
(State of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)
7031 Columbia Gateway Drive, Columbia, Maryland		21046-2289
(Address of principal executive offices)		(Zip code)
Registrant’s telephone number, including area code: 443-285-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction  A.2.):

o Written communications pursuant to Rule 425 under the Securities Act  (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act  (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (7 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02.  Results of Operations and Financial Condition

The registrant’s press release dated August 29, 2006, regarding its financial results for the fourth quarter and fiscal year ended June 30, 2006, is attached as Exhibit 99.1 to this Form 8-K.

Note:     The information in Item 2.02 of this Form 8-K, and Exhibit 99.1, attached, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information and exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 29, 2006
	MICROS Systems, Inc.
	(Registrant)
	By:	/s/ Gary C. Kaufman
		Gary C. Kaufman
		Executive Vice-President, Finance and
		Administration, and Chief Financial Officer

Exhibit 99.1 – Press Release

EX-99.1

Exhibit 99.1

Release Date:    August 29, 2006	Contacts:	Peter J. Rogers, Jr.
		Senior Vice President, Investor Relations
		MICROS Systems, Inc.
		443-285-8059
		progers@micros.com

MICROS Reports Fiscal 2006 Year Results Record Quarterly and Fiscal Year 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 fourth quarter and fiscal year ending June 30, 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 $191.8 million, an increase of $19.8 million, or 11.5%, over the same period last year.  Revenue for the fiscal year was $679.0 million, an increase of $81.7 million, or 13.7%, over the previous fiscal year.

-GAAP net income for the quarter was $21.4 million. GAAP net income for the fiscal year was $63.5 million.

-GAAP EPS for the quarter, per diluted share, was $0.53.  GAAP EPS for the fiscal year, per diluted share, was $1.56.

-Net income for the quarter, before the share-based payment charge, a non-GAAP measure, was $23.4 million, an increase of $5.4 million, or 29.7% over the year ago period.  Net income for the fiscal year, before the share-based payment charge, was $70.6 million, an increase of $17.0 million, or 31.6% over the previous fiscal year.

-EPS for the quarter, per diluted share, before the share-based payment charge, a non-GAAP measure, was $0.58, an increase of $0.13, or 28.9% over year ago period.  EPS for the fiscal year, per diluted share, before the share-based payment charge, was $1.74, an increase of $0.39, or 28.9% over the previous fiscal year.

-MICROS’s financial results were Company records for both a fiscal quarter and for a fiscal year.

Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are extremely pleased with the record results for the fourth quarter and fiscal year.  We are proud of our achievements and are appreciative of the trust that customers put in our products and services.  The quality of our products and the outstanding efforts of our employees continue to contribute to our success.”

MICROS’s guidance for its fiscal 2007 first quarter ending September 30, 2006 is for revenue between $170.0 million and $173.0 million, and non-GAAP net income, excluding the currently projected share-based payment charge for the first fiscal quarter, between $15.3 million and $16.5 million, or non-GAAP earnings per share between $0.38 and $0.41. Guidance for GAAP net income is between $13.6 million and $14.7 million, or earnings per diluted share of $0.33 to $0.36.

Guidance for the fiscal 2007 year ending June 30, 2007 is for revenue between $778.0 million and $781.0 million and non-GAAP net income, excluding the currently projected share-based payment charge for the fiscal year, between $86.5 million and $88.7 million, or non-GAAP earnings per diluted share between $2.10 and $2.14.  Guidance for GAAP net income is between $78.3 million and $80.3 million, or earnings per diluted share of $1.90 to $1.94.

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 2007 first quarter ending September 30, 2006, and its fiscal 2007 year ending June 30, 2007, 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 August 29, 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 443-285-8112 or at MICROS’s website at http://www.micros.com.

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

	Fourth quarter ended June 30,						Twelve months ended June 30,
	2006			2005			2006			2005
Revenue:
Hardware	$	62,976		$	59,982		$	215,561		$	191,785
Software		35,048			31,187			120,093			106,370
Service		93,805			80,852			343,299			299,109
Total revenue		191,829			172,021			678,953			597,264
Cost of sales:
Hardware		40,690			39,130			144,061			127,349
Software		5,030			4,857			23,488			22,822
Service		45,742			40,269			165,721			145,309
Total cost of sales		91,462			84,256			333,270			295,480
Gross margin		100,367			87,765			345,683			301,784
Selling, general and administrative expenses		56,484			51,000			207,976			185,398
Research and development expenses		7,709			6,536			26,871			27,399
Depreciation and amortization		2,902			2,485			10,459			10,112
Stock option expense (*)		2,599			0			9,100			0
Total operating expenses		69,694			60,021			254,406			222,909
Income from operations		30,673			27,744			91,277			78,875
Non-operating income, net		1,781			1,138			4,388			2,219
Income before taxes, minority interests, and equity in net earnings of affiliates		32,454			28,882			95,665			81,094
Income tax provision		10,912			10,732			31,455			26,761
Income before minority interests and equity in net earnings of affiliates		21,542			18,150			64,210			54,333
Minority interests and equity in net earnings of affiliates		(165	)		(82	)		(682	)		(673	)
Net income (GAAP)	$	21,377		$	18,068		$	63,528		$	53,660
Net income per common share – diluted (GAAP)	$	0.53		$	0.45		$	1.56		$	1.35
Weighted-average number of shares outstanding -diluted		40,570			40,520			40,624			39,803

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)	$	21,377	$	18,068	$	63,528	$	53,660
Add back:
(*) Stock option expense
COGS - service		10		0		35		0
Selling, general and administrative expenses		2,492		0		8,851		0
Research and development expenses		107		0		249		0
Stock option expense included in operating expenses		2,599		0		9,100		0
Total stock option expense		2,609		0		9,135		0
Subtract:
Total tax effect on stock option expense		555				2,026
Net income (before share-based payment charge)	$	23,431	$	18,068	$	70,637	$	53,660
Net income per common share-diluted (before share-based payment charge)	$	0.58	$	0.45	$	1.74	$	1.35

MICROS SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)

	June 30, 2006		June 30, 2005
ASSETS
Current assets:
Cash and cash equivalents	$	237,222	$	153,521
Accounts receivable, net		141,159		131,423
Inventories, net		46,637		42,664
Deferred income taxes		16,649		10,883
Prepaid expenses and other current assets		15,485		28,934
Total current assets		457,152		367,425
Property, plant and equipment, net		23,794		21,308
Deferred income taxes, non-current		16,192		18,195
Goodwill		98,581		86,781
Intangible assets, net		10,427		10,958
Purchased and internally developed software costs, net		38,328		40,160
Other assets		3,383		2,401
Total assets	$	647,857	$	547,228
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank lines of credit	$	2,134	$	2,387
Accounts payable		36,022		38,253
Accrued expenses and other current liabilities		84,897		74,543
Current portion of capital lease obligations		89		162
Income taxes payable		12,416		3,260
Deferred income taxes		227		362
Deferred service revenue		68,246		58,022
Total current liabilities		204,031		176,989
Capital lease obligations, net of current portion		424		251
Deferred income taxes, non-current		14,998		16,105
Other non-current liabilities		8,146		5,905
Commitments and contingencies
Minority interests		3,142		2,807
Shareholders’ equity:
Common stock		487		482
Capital in excess of par		100,723		99,990
Retained earnings		302,848		239,320
Accumulated other comprehensive income		13,058		5,379
Total shareholders’ equity		417,116		345,171
Total liabilities and shareholders’ equity	$	647,857	$	547,228