MICROS Reports Fiscal 2012 Results RECORD REVENUE, OPERATING INCOME, NET INCOME AND EPS: REVENUE, NET INCOME AND EPS EXCEED EXPECTATIONS

COLUMBIA, Md., Aug. 23, 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 fourth quarter and fiscal year ending June 30, 2012.  

FINANCIAL HIGHLIGHTS

  • Revenue for the fiscal 2012 fourth quarter was $302.5 million, an increase of $28.4 million, or 10.4%, over the same period last year.
  • Revenue for the fiscal year was $1,107.5 million, an increase of $99.7 million, or 9.9%, over the same period last year.
  • GAAP net income for the quarter was $48.2 million, an increase of $6.7 million, or 16.1%, over the same period last year.        
  • GAAP net income for the fiscal year was $167.0 million, an increase of $22.9 million, or 15.9%, over the same period last year.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.59, an increase of $0.09, or 18.0%, over the same period last year.
  • GAAP diluted EPS for the fiscal year was $2.03, an increase of $0.29, or 16.7%, over the same period last year.

During the fourth quarter, we recorded an impairment charge of $4.0 million related to our investments in auction rate securities.

  • Non-GAAP financial results, excluding the effect of charges for stock options, amortization of intangibles for Torex Retail  and the investment impairment, are as follows:
    • Non-GAAP net income for the quarter was $55.7 million, an increase of $8.0 million, or 16.7%, over the same period last year.
    • Non-GAAP net income for the fiscal year was $182.7 million, an increase of $24.3 million, or 15.3%, over the same period last year.
    • Non-GAAP diluted EPS for the quarter was $0.68, an increase of $0.10, or 17.2%, over the same period last year.
    • Non-GAAP diluted EPS for the fiscal year $2.22, an increase of $0.30, or 15.6%, over the same period last year.

The financial results for the fourth fiscal quarter exceeded consensus expectations.  The revenue, operating income, net income and EPS for the quarter and fiscal year were records for MICROS.

Tom Giannopoulos, MICROS's Chairman and CEO, stated, "We are pleased to achieve yet another year of record revenue, operating income, net income, and earnings per share amid the uncertain global economy.  We look forward to another year of profitable growth."

MICROS's financial guidance for fiscal 2013 is for revenue of $1.3 to $1.325 billion and Non-GAAP EPS of $2.40 to $2.44.

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 August 23, 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.

The MICROS logo is a registered trademark of MICROS Systems, Inc.
All other product and brand names are the property of their respective owners.

 

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)




























Three Months Ended


Twelve Months Ended





June 30,


June 30,






2012


2011


2012


2011

Revenue:












Hardware




$      69,039


$      56,995


$    237,920


$     199,003


Software




37,216


35,080


142,617


127,123


Service




196,271


182,060


726,994


681,733

Total revenue




302,526


274,135


1,107,531


1,007,859













Cost of sales:












Hardware




45,254


33,532


152,242


126,667


Software




5,788


5,166


20,779


21,200


Service




86,094


80,519


319,705


299,818


Stock option expense




52


18


195


105

Total cost of sales




137,188


119,235


492,921


447,790













Gross margin




165,338


154,900


614,610


560,069














Selling, general and administrative expenses




71,574


69,948


296,815


272,229


Research and development expenses




14,176


12,131


50,792


45,248


Depreciation and amortization




4,465


4,880


15,848


16,790


Stock option expense




3,900


2,908


16,306


12,343


Amortization expense - Torex acquisition




329


0


329


0


Litigation reserve




0


0


0


3,000

Total operating expenses




94,444


89,867


380,090


349,610













Income from operations




70,894


65,033


234,520


210,459

Non-operating income (expense):












Interest income, net




1,603


1,558


6,788


5,023


Interest expense - litigation reserve




-


-


-


(360)


Change in credit based impairment, net of realized gain on redemption



(4,000)


(4,236)


(4,000)


(4,217)


Other non-operating expense, net




(320)


(561)


(117)


(1,293)

Total non-operating (loss) income, net




(2,717)


(3,239)


2,671


(847)













Income before taxes



68,177


61,794


237,191


209,612

Income tax provision 




20,098


20,233


70,090


64,999

Net income



48,079


41,561


167,101


144,613

Less:  Net loss (income) attributable to noncontrolling interest




139


(25)


(118)


(554)













Net Income attributable to MICROS Systems, Inc. (GAAP)




$      48,218


$      41,536


$    166,983


$     144,059













Net Income per diluted common share attributable to
MICROS Systems, Inc.



$           0.59


$           0.50


$           2.03


$           1.74

Weighted-average number of shares outstanding - diluted




82,283


82,952


82,238


82,672













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.



$      48,218


$      41,536


$    166,983


$     144,059

Add back:












Stock option expense












    Selling, general and administrative expenses




3,539


2,680


15,067


11,747


    Research and development expenses




361


228


1,239


596


    Cost of sales




52


18


195


105






3,952


2,926


16,501


12,448


Credit based impairment charge, net of realized gain on redemption




4,000


4,236


4,000


4,217


Torex amortization expense




329


-


329


-


Litigation reserve, including accrued interest expense




-


-


-


3,360


Total add back




8,281


7,162


20,830


20,025













Subtract tax effect on:












Stock option expense




819


969


5,163


4,426


Litigation reserve, including accrued interest expense




-


-


-


1,280

Non-GAAP Net Income attributable to MICROS Systems, Inc.




$      55,680


$      47,729


$    182,650


$     158,378













Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.



$           0.68


$           0.58


$           2.22


$           1.92


























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)








June 30,
2012


June 30,
2011

ASSETS





Current assets:





     Cash and cash equivalents and short-term investments


$             582,038


$          780,265

     Accounts receivable, net


235,433


181,833

     Inventory


44,278


38,119

     Deferred income taxes


17,004


21,036

     Prepaid expenses and other current assets


37,343


30,454

           Total current assets


916,096


1,051,707






Long-term investments


34,456


46,226

Property, plant and equipment, net


35,435


28,145

Deferred income taxes, non-current


50,326


20,798

Goodwill


444,117


242,319

Intangible assets, net


45,024


19,293

Purchased and internally developed software costs, net


33,980


18,710

Other assets


6,586


5,820

Total Assets


$          1,566,020


$       1,433,018






LIABILITIES AND EQUITY





Current liabilities:





     Accounts payable


$               69,978


$             54,851

     Accrued expenses and other current liabilities


174,214


148,901

     Income taxes payable


1,788


7,705

     Deferred revenue


169,989


143,238

         Total current liabilities


415,969


354,695






Income taxes payable, non-current


34,722


32,309

Deferred income taxes, non-current


2,554


8,261

Other non-current liabilities


16,644


14,502

         Total liabilities


469,889


409,767






Commitments and contingencies










Equity:





  MICROS Systems, Inc. shareholders' equity:





     Common stock


2,008


2,020

     Capital in excess of par


107,662


132,529

     Retained earnings


1,000,822


833,839

     Accumulated other comprehensive income


(17,847)


48,323

          Total MICROS Systems, Inc. shareholders' equity


1,092,645


1,016,711

  Noncontrolling interest


3,486


6,540

Total Equity


1,096,131


1,023,251






Total Liabilities and Equity


$          1,566,020


$       1,433,018
















 

 

Contact:

Peter J. Rogers, Jr.


Executive Vice President, Investor Relations


443-285-8059


progers@micros.com

 

SOURCE MICROS Systems, Inc.



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