Press Release
MICROS REPORTS FISCAL 2013 SECOND QUARTER RESULTS

RECORD SECOND QUARTER REVENUE, NET INCOME AND EPS NEW STOCK BUYBACK PLAN APPROVED

Columbia, MD- January 24, 2013-MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2013 second quarter ended December 31, 2012.

FINANCIAL HIGHLIGHTS

  • Revenue for the quarter was $324.5 million, an increase of $54.1 million, or 20.0%, versus the same period last year.
  • Revenue for the six-month period was $624.4 million, an increase of $97.4 million, or 18.5% over the same period last year.
  • GAAP net income for the quarter was $44.1 million, an increase of $5.8 million, or 15.2%, over the same period last year.
  • GAAP net income for the six-month period was $85.2 million, an increase of $9.6 million, or 12.8%, over the same period last year.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.54 per share, an increase of $0.07, or 14.9%, over the same period last year.
  • GAAP diluted EPS for the six-month period was $1.04, an increase of $0.12, or 13.0%, over the same period last year.
  • Non-GAAP financial results, excluding the effect of charges for stock options, amortization of Torex intangibles, restructuring of Torex, and a one-time gain on the sale of auction rate securities, are as follows:
    • Non-GAAP net income for the quarter was $47.0 million, an increase of $4.9 million, or 11.6%, over the year ago period.
    • Non-GAAP net income for the six-month period was $93.4 million, an increase of $12.0 million, or 14.7%, over the year ago period.
    • Non-GAAP diluted EPS for the quarter was $0.58, an increase of $0.07, or 13.7%, over the year ago period.
    • Non-GAAP diluted EPS for the six-month period was $1.14, an increase of $0.15, or 15.2%, over the year ago period.

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

Peter A. Altabef, MICROS's President and CEO, stated, "We are pleased with the results of the second fiscal quarter as our business progresses across all regions of the world."

MICROS's financial guidance for fiscal 2013 remains the same as previously provided in August 2012 with revenue between $1.3 billion and $1.325 billion and Non-GAAP EPS between $2.40 and $2.44.

NEW STOCK BUYBACK APPROVED

On January 22, 2013, our Board of Directors approved the purchase of an additional two million shares of our common stock. The new plan will take the effect once the current two million share buyback plan of August 2010 is completed. Under the new plan, shares will be purchased from time to time in the open market as business conditions warrant.

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 24, 2013. 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.

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,
2012 2011 2012 2011
Revenue:
Hardware $ 67,245 $ 57,427 $ 131,004 $ 105,837
Software 38,747 34,552 69,525 67,824
Service 218,528 178,424 423,842 353,300
Total revenue 324,520 270,403 624,371 526,961
Cost of sales:
Hardware 43,295 36,637 86,352 66,800
Software 5,257 4,294 10,621 9,153
Service 103,767 77,103 201,864 154,186
Stock option expense 82 48 155 85
Total cost of sales 152,401 118,082 298,992 230,224
Gross margin 172,119 152,321 325,379 296,737
Selling, general and administrative expenses  79,952 76,549 152,600 149,301
Research and development expenses 17,526 12,174 33,891 23,200
Depreciation and amortization  4,207 3,624 8,324 7,860
Stock option expense 7,233 5,729 11,371 8,696
Amortization expense - Torex acquisition 1,314 0 2,722 0
Restructuring charge 296 0 1,693 0
Total operating expenses 110,528 98,076 210,601 189,057
Income from operations 61,591 54,245 114,778 107,680
Non-operating income (expense):
Interest income, net  1,129  1,765  2,305  3,579
Realized gain on sale of auction rate securities 3,494 0 3,494 0
Other non-operating expense, net  (635)  (350)  (964)  198
Total non-operating income, net  3,988  1,415  4,835  3,777
Income before taxes 65,579 55,660 119,613 111,457
Income tax provision  21,289 17,477 34,257 35,891
Net income 44,290 38,183 85,356 75,566
Less: Net (income) loss attributable to noncontrolling interest (204) 102 (206) (49)
Net Income attributable to MICROS Systems, Inc. (GAAP) $ 44,086 $ 38,285 $ 85,150 $ 75,517
Net Income per diluted common share attributable to
MICROS Systems, Inc. 		$ 0.54 $ 0.47 $ 1.04 $ 0.92
Weighted-average number of shares outstanding - diluted 81,289 81,971 81,643 82,190
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. $ 44,086 $ 38,285 $ 85,150 $ 75,517
Add back:
Stock option expense
 Selling, general and administrative expenses  6,905  5,424  10,605  8,082
 Research and development expenses  328  305  766  614
 Cost of sales  82  48  155  85
 7,315  5,777  11,526  8,781
Regalized gain on sale of auction rate securities (3,494) 0 (3,494) 0
Torex amortization expense  1,314 0  2,722 0
Restructuring charge  296 0  1,693 0
Total add back  5,431  5,777  12,447  8,781
Subtract tax effect on:
Stock option expense  2,391  1,959  3,655  2,902
Torex amortization expense  59 0  118 0
Restructuring charge  83 0  432 0
Non-GAAP Net Income attributable to MICROS Systems, Inc. $ 46,984 $ 42,103 $ 93,392 $ 81,396
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc. $ 0.58 $ 0.51 $ 1.14 $ 0.99

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,
2012 		June 30,
2012
ASSETS
Current assets:
 Cash and cash equivalents and short-term investments $ 631,833 $ 582,038
 Accounts receivable, net 215,549 235,433
 Inventory 52,728 44,278
 Deferred income taxes 13,313 17,004
 Prepaid expenses and other current assets 54,995 37,343
 Total current assets 968,418 916,096
Long-term investments 5,579 34,456
Property, plant and equipment, net 39,350 35,435
Deferred income taxes, non-current 54,602 50,326
Goodwill 453,956 444,117
Intangible assets, net 41,441 45,024
Purchased and internally developed software costs, net 34,986 33,980
Other assets 6,837 6,586
Total Assets $ 1,605,169 $ 1,566,020
LIABILITIES AND EQUITY
Current liabilities:
 Accounts payable $ 63,128 $ 69,978
 Accrued expenses and other current liabilities 145,124 174,214
 Income taxes payable  11,956 1,788
 Deferred revenue 164,760 169,989
 Total current liabilities  384,968  415,969
Income taxes payable, non-current 33,136 34,722
Deferred income taxes, non-current 866 2,554
Other non-current liabilities 15,988 16,644
 Total liabilities 434,958 469,889
Commitments and contingencies
Equity:
 MICROS Systems, Inc. shareholders' equity:
 Common stock  1,984  2,008
 Capital in excess of par 71,773 107,662
 Retained earnings 1,085,972 1,000,822
 Accumulated other comprehensive income (loss) 7,389 (17,847)
 Total MICROS Systems, Inc. shareholders' equity 1,167,118 1,092,645
 Noncontrolling interest 3,093 3,486
Total Equity 1,170,211 1,096,131
Total Liabilities and Equity $ 1,605,169 $ 1,566,020
distributed by