MICROS Reports Fiscal 2012 Results

RECORD REVENUE, OPERATING INCOME, NET INCOME AND EPS: REVENUE, NET INCOME AND EPS EXCEED EXPECTATIONS

Aug 23, 2012, 16:02 ET from MICROS Systems, Inc.

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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