MICROS SYSTEMS, INC. 
By COLUMBIA, Md., Jan. 26, 2012 /PRNewswire/ -- MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2012 second quarter ended December 31, 2011.
FINANCIAL HIGHLIGHTS
-- Revenue for the quarter was $270.4 million, an increase of $23.3
million, or 9.4%, versus the same period last year.
-- Revenue for the six-month period was $527.0 million, an increase of
$46.4 million, or 9.7% over the same period last year.
-- GAAP net income for the quarter was $38.3 million, an increase of $6.0
million, or 18.4%, over the same period last year.
-- GAAP net income for the six-month period was $75.5 million, an increase
of $11.6 million, or 18.1%, over the same period last year.
-- GAAP diluted earnings per share (EPS) for the quarter was $0.47 per
share, an increase of $0.08, or 20.5%, over the same period last year.
-- GAAP diluted EPS for the six-month period was $0.92, an increase of
$0.14, or 17.9%, over the same period last year.
-- 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 $42.1 million, an increase
of $5.2 million, or 14.0%, over the year ago period.
-- Non-GAAP net income for the six-month period was $81.4 million, an
increase of $11.1 million, or 15.8%, over the year ago period.
-- Non-GAAP diluted EPS for the quarter was $0.51, an increase of
$0.06, or 13.3%, over the year ago period.
-- Non-GAAP diluted EPS for the six-month period was $0.99, an increase
of $0.14, or 16.5%, over the year ago period.
MICROS's revenue, net income and EPS results were Company records for a second fiscal quarter and exceeded consensus expectations.
Tom Giannopoulos, MICROS's Chairman and CEO, stated, "We are extremely pleased with our record results for the quarter and first half of our fiscal year. We continue to execute well despite the uncertain business conditions around the world. "
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 January 26, 2012. 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.
Contact: Peter J. Rogers, Jr.
Executive Vice President, Investor Relations
443-285-8059
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
------------ ------------
2011 2010 2011 2010
---- ---- ---- ----
Revenue:
Hardware $57,427 $47,841 $105,837 $92,107
Software 34,552 33,079 67,824 60,968
Service 178,424 166,197 353,300 327,456
Total revenue 270,403 247,117 526,961 480,531
------- ------- ------- -------
Cost of sales:
Hardware 36,637 31,353 66,800 61,308
Software 4,294 4,921 9,153 10,747
Service 77,103 73,446 154,186 144,624
Stock option expense 48 27 85 62
Total cost of sales 118,082 109,747 230,224 216,741
------- ------- ------- -------
Gross margin 152,321 137,370 296,737 263,790
Selling, general and
administrative expenses 76,549 68,351 149,301 130,542
Research and development
expenses 12,174 10,806 23,200 21,467
Depreciation and amortization 3,624 4,243 7,860 8,362
Litigation reserve 0 3,000 0 3,000
Stock option expense 5,729 4,289 8,696 6,899
Total operating expenses 98,076 90,689 189,057 170,270
------ ------ ------- -------
Income from operations 54,245 46,681 107,680 93,520
Non-operating income (expense):
Interest income, net 1,765 1,397 3,579 2,453
Interest expense -litigation
reserve - (360) - (360)
Change in credit based
impairment, net of realized
gain on redemption - (73) - 19
Other non-operating
(expense) income, net (350) 505 198 (395)
Total non-operating income, net 1,415 1,469 3,777 1,717
----- ----- ----- -----
Income before taxes 55,660 48,150 111,457 95,237
Income tax provision 17,477 15,649 35,891 31,042
------ ------ ------ ------
Net income 38,183 32,501 75,566 64,195
Less: Net loss (income)
attributable to noncontrolling
interest 102 (173) (49) (251)
--- ---- --- ----
Net Income attributable to MICROS
Systems, Inc. (GAAP) $38,285 $32,328 $75,517 $63,944
======= ======= ======= =======
Net Income per diluted common share
attributable to $0.47 $0.39 $0.92 $0.78
MICROS Systems, Inc. ===== ===== ===== =====
Weighted-average number of shares
outstanding - diluted 81,971 82,717 82,190 82,390
====== ====== ====== ======
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. $38,285 $32,328 $75,517 $63,944
Add back:
Stock option expense
Selling, general and
administrative expenses 5,424 4,164 8,082 6,648
Research and development
expenses 305 125 614 251
Cost of sales 48 27 85 62
5,777 4,316 8,781 6,961
Litigation reserve, including
accrued interest expense - 3,360 - 3,360
Credit based impairment
charge, net of realized gain
on redemption - 73 - (19)
Total add back 5,777 7,749 8,781 10,302
Subtract tax effect on:
Stock option expense 1,959 1,866 2,902 2,655
Litigation reserve, including
accrued interest expense - 1,280 - 1,280
Non-GAAP Net Income attributable to
MICROS Systems, Inc. $42,103 $36,931 $81,396 $70,311
======= ======= ======= =======
Non-GAAP Net Income per Diluted
Common Share attributable to MICROS
Systems, Inc. $0.51 $0.45 $0.99 $0.85
===== ===== ===== =====
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.
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands)
December 31, June 30,
2011 2011
---- ----
ASSETS
Current assets:
Cash and cash equivalents and
short-term investments $739,505 $780,265
Accounts receivable, net 179,008 181,833
Inventory, net 37,293 38,119
Deferred income taxes 19,045 21,036
Prepaid expenses and other current
assets 46,553 30,454
------ ------
Total current assets 1,021,404 1,051,707
Long-term investments 45,525 46,226
Property, plant and equipment, net 29,247 28,145
Deferred income taxes, non-current 24,007 20,798
Goodwill 236,563 242,319
Intangible assets, net 16,311 19,293
Purchased and internally developed
software costs, net 18,505 18,710
Other assets 5,868 5,820
----- -----
Total Assets $1,397,430 $1,433,018
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $50,060 $54,851
Accrued expenses and other current
liabilities 142,070 148,901
Income taxes payable 5,631 7,705
Deferred revenue 137,569 143,238
------- -------
Total current liabilities 335,330 354,695
Income taxes payable, non-current 36,149 32,309
Deferred income taxes, non-current 7,120 8,261
Other non-current liabilities 14,594 14,502
------ ------
Total liabilities 393,193 409,767
Commitments and contingencies
Equity:
MICROS Systems, Inc. shareholders'
equity:
Common stock 1,998 2,020
Capital in excess of par 97,351 132,529
Retained earnings 909,356 833,839
Accumulated other comprehensive
income (10,510) 48,323
------- ------
Total MICROS Systems, Inc.
shareholders' equity 998,195 1,016,711
Noncontrolling interest 6,042 6,540
----- -----
Total Equity 1,004,237 1,023,251
--------- ---------
Total Liabilities and Equity $1,397,430 $1,433,018
========== ==========
SOURCE MICROS Systems, Inc.
