MICROS Reports Fiscal 2013 First Quarter Results

RECORD FIRST FISCAL QUARTER REVENUE, NET INCOME AND EPS; RESULTS EXCEED EXPECTATIONS

Oct 25, 2012, 16:02 ET from MICROS Systems, Inc.

COLUMBIA, Md., Oct. 25, 2012 /PRNewswire/ -- MICROS Systems, Inc. (NASDAQ: MCRS), a leading provider of information technology solutions for the hospitality and retail industries, today announced the results for its fiscal 2013 first quarter ended September 30, 2012. 

FINANCIAL HIGHLIGHTS                                                                        

  • Revenue for the quarter was $299.9 million, an increase of $43.3 million, or 16.9%, over the same period last year.
  • GAAP net income for the quarter was $41.1 million, an increase of $3.8 million, or 10.3%, over the same period last year.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.50 per share, an increase of $0.05, or 11.1% over the same period last year.
  • Non-GAAP financial results for the quarter, excluding the effect of charges for stock options,  amortization of Torex intangibles and restructuring for Torex are as follows:
    • Non-GAAP net income for the quarter was $46.4 million, an increase of $7.1 million, or 18.1%, over the same period last year.
    • Non-GAAP diluted EPS for the quarter was $0.57 per share an increase of $0.09, or 18.8%, over the same period last year.

The financial results were records for a first fiscal quarter and exceeded consensus expectations.

Tom Giannopoulos, MICROS's Chairman and CEO, stated: "Given the current global economic climate, we are pleased with the strong start for our first quarter of fiscal 2013."

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.

MICROS's stock is traded through NASDAQ under the symbol MCRS.  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 October 25, 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.

About MICROS Systems, Inc. MICROS Systems, Inc. provides enterprise applications for the hospitality and retail industries worldwide. Over 330,000 MICROS systems are currently installed in table and quick service restaurants, hotels, motels, casinos, leisure and entertainment, and retail operations in more than 180 countries, and on all seven continents. In addition, MICROS provides property management systems, central reservation and customer information solutions under the brand MICROS-Fidelio for more than 29,000 hotels worldwide, as well as point-of-sale, loss prevention, and cross-channel functionality through its MICROS-Retail division for more than 100,000 retail stores worldwide. MICROS stock is traded through NASDAQ under the symbol MCRS.

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)

Three Months Ended

September 30,

2012

2011

Revenue:

Hardware

$      63,759

$      48,409

Software

30,778

33,273

Service

205,314

174,876

Total revenue

299,851

256,558

Cost of sales:

Hardware

43,057

30,163

Software

5,365

4,859

Service

98,096

77,083

Stock option expense

73

37

Total cost of sales

146,591

112,142

Gross margin

153,260

144,416

Selling, general and administrative expenses

72,648

72,751

Research and development expenses

16,366

11,026

Depreciation and amortization

4,117

4,236

Stock option expense

4,137

2,968

Torex amortization expense

1,408

0

Torex restructuring charge

1,397

0

Total operating expenses

100,073

90,981

Income from operations

53,187

53,435

Non-operating income (expense):

Interest income, net

1,176

1,815

Other non-operating (expense) income, net

(329)

547

Total non-operating income, net

847

2,362

Income before taxes

54,034

55,797

Income tax provision 

12,968

18,414

Net income

41,066

37,383

Less:  Net income attributable to noncontrolling interest

(2)

(151)

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

$      41,064

$      37,232

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

$           0.50

$           0.45

Weighted-average number of shares outstanding - diluted

81,969

82,410

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.

$      41,064

$      37,232

Add back:

Stock option expense

    Selling, general and administrative expenses

3,700

2,659

    Research and development expenses

437

309

    Cost of sales

73

37

4,210

3,005

Torex amortization expense

1,408

-

Torex restructuring charge

1,397

-

Total add back

7,015

3,005

Subtract tax effect on:

Stock option expense

1,264

943

Torex amortization expense

59

-

Torex restructuring charge

349

-

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

$      46,407

$      39,294

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

$           0.57

$           0.48

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)

September 30, 2012

June 30, 2012

ASSETS

Current assets:

     Cash and cash equivalents and short-term investments

$             581,168

$          582,038

     Accounts receivable, net

243,997

235,433

     Inventory

48,859

44,278

     Deferred income taxes

14,001

17,004

     Prepaid expenses and other current assets

57,302

37,343

           Total current assets

945,327

916,096

Long-term investments

34,458

34,456

Property, plant and equipment, net

36,381

35,435

Deferred income taxes, non-current

52,881

50,326

Goodwill

450,926

444,117

Intangible assets, net

43,426

45,024

Purchased and internally developed software costs, net

34,511

33,980

Other assets

6,803

6,586

Total Assets

$          1,604,713

$       1,566,020

LIABILITIES AND EQUITY

Current liabilities:

     Accounts payable

$               63,451

$             69,978

     Accrued expenses and other current liabilities

145,660

174,214

     Income taxes payable

6,107

1,788

     Deferred revenue

191,348

169,989

         Total current liabilities

406,566

415,969

Income taxes payable, non-current

31,092

34,722

Deferred income taxes, non-current

929

2,554

Other non-current liabilities

17,241

16,644

         Total liabilities

455,828

469,889

Commitments and contingencies

Equity:

  MICROS Systems, Inc. shareholders' equity:

     Common stock

2,006

2,008

     Capital in excess of par

104,480

107,662

     Retained earnings

1,041,886

1,000,822

     Accumulated other comprehensive loss

(3,023)

(17,847)

          Total MICROS Systems, Inc. shareholders' equity

1,145,349

1,092,645

  Noncontrolling interest

3,536

3,486

Total Equity

1,148,885

1,096,131

Total Liabilities and Equity

$          1,604,713

$       1,566,020

Contact: 

Peter J. Rogers, Jr.

Executive Vice President, Investor Relations

443-285-8059

progers@micros.com

 

SOURCE MICROS Systems, Inc.



RELATED LINKS

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