MICROS Reports Fiscal 2013 Results Record Fiscal Year Revenue, Net Income And EPS

COLUMBIA, Md., Aug. 22, 2013 /PRNewswire/ -- MICROS Systems, Inc. (Nasdaq: MCRS), a leading supplier of information systems to the food and beverage, hotel and retail industries today announced the results for its fiscal year 2013 fourth quarter and fiscal year ending June 30, 2013. 

FINANCIAL HIGHLIGHTS

  • Revenue for the fiscal 2013 fourth quarter was $328.6 million, an increase of $26.1 million, or 8.6%, over the same period last year.
  • Revenue for the fiscal 2013 year was $1.268 billion, an increase of $160.6 million, or 14.5%, over the same period last year.
  • GAAP net income for the quarter was $42.0 million, a decrease of $6.2 million, or 12.9%, over the same period last year.
  • GAAP net income for the fiscal year was $171.4 million, an increase of $4.4 million, or 2.7%, over the same period last year.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.53, a decrease of $0.06, or 10.2%, over the same period last year.
  • GAAP diluted EPS for the fiscal year was $2.12, an increase of $0.09, or 4.4%, 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 $48.9 million, a decrease of $6.8 million, or 12.2%, over the same period last year.
    • Non-GAAP net income for the fiscal year was $191.9 million, an increase of $9.3 million, or 5.1%, over the same period last year.
    • Non-GAAP diluted EPS for the quarter was $0.62, a decrease of $0.06, or 8.8%, over the same period last year.
    • Non-GAAP diluted EPS for the fiscal year $2.38, an increase of $0.16, or 7.2%, over the same period last year.

The fiscal year revenue, net income and EPS, on GAAP and Non-GAAP results are fiscal year records for MICROS.

Peter A. Altabef, MICROS's CEO, stated, "We are pleased that we achieved a record year of revenue, net income and earnings per share while continuing our strong investment in talent, product and infrastructure."

MICROS's financial guidance for fiscal 2014 is for revenue of $1.295 billion to $1.320 billion and Non-GAAP EPS of $2.46 to $2.50.

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 22, 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.

Contact:

Peter J. Rogers, Jr.


Executive Vice President, Investor Relations


443-285-8059


progers@micros.com

The MICROS logo is a registered trademark of MICROS Systems, Inc.

 

 

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,



2013


2012


2013


2012

Revenue:









Hardware

$      74,125


$      69,039


$    269,651


$    237,920


Software

36,688


37,216


143,034


142,617


Service

217,796


196,271


855,400


726,994

Total revenue

328,609


302,526


1,268,085


1,107,531










Cost of sales:









Hardware

47,382


45,254


175,248


152,242


Software

5,743


5,788


22,178


20,779


Service

102,365


86,094


406,429


319,705


Stock option expense

94


52


338


195

Total cost of sales

155,584


137,188


604,193


492,921










Gross margin

173,025


165,338


663,892


614,610











Selling, general and administrative expenses

86,182


71,574


317,035


296,815


Research and development expenses

19,101


14,176


70,962


50,792


Depreciation and amortization

4,439


4,465


16,770


15,848


Stock option expense

4,742


3,900


20,764


16,306


Torex amortization expense

1,386


329


5,803


329


Torex restructuring charge

3,095


0


5,548


0

Total operating expenses

118,945


94,444


436,882


380,090










Income from operations

54,080


70,894


227,010


234,520

Non-operating income (expense):









Interest income, net

1,034


1,603


4,258


6,788


Credit based impairment charge (realized gain on sale of auction rate securities)

0


(4,000)


3,494


(4,000)


Other non-operating expense, net

(637)


(320)


(957)


(117)

Total non-operating income (loss), net

397


(2,717)


6,795


2,671










Income before taxes

54,477


68,177


233,805


237,191

Income tax provision 

12,332


20,098


61,958


70,090

Net income

42,145


48,079


171,847


167,101

Less:  Net (income) loss attributable to noncontrolling interest

(140)


139


(429)


(118)










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

$      42,005


$      48,218


$    171,418


$    166,983










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

$           0.53


$           0.59


$           2.12


$           2.03

Weighted-average number of shares outstanding - diluted

79,192


82,283


80,772


82,238



















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.

$      42,005


$      48,218


$    171,418


$    166,983

Add back:









Stock option expense









    Selling, general and administrative expenses

4,358


3,539


19,124


15,067


    Research and development expenses

384


361


1,640


1,239


    Cost of sales

94


52


338


195



4,836


3,952


21,102


16,501


Credit based impairment charge (realized gain on sale of auction rate securities)

0


4,000


(3,494)


4,000


Torex amortization expense

1,386


329


5,803


329


Torex restructuring charge

3,095


0


5,548


0


Total add back

9,317


8,281


28,959


20,830










Subtract tax effect on:









Stock option expense

1,495


819


6,721


5,163


Torex amortization expense

47


0


224


0


Torex restructuring charge

871


0


1,512


0

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

$      48,909


$      55,680


$    191,920


$    182,650










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

$           0.62


$           0.68


$           2.38


$           2.22












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,
2013


June 30,
2012

ASSETS





Current assets:





     Cash and cash equivalents and short-term investments


$         634,069


$         582,038

     Accounts receivable, net


228,455


235,433

     Inventory


49,273


44,278

    Income taxes receivable


12,771


122

     Deferred income taxes


15,022


17,004

     Prepaid expenses and other current assets


44,648


37,221

           Total current assets


984,238


916,096






Long-term investments


-


34,456

Property, plant and equipment, net


44,127


35,435

Deferred income taxes, non-current


50,186


50,326

Goodwill


432,950


444,117

Intangible assets, net


37,754


45,024

Purchased and internally developed software costs, net


32,543


33,980

Other assets


7,240


6,586

Total Assets


$      1,589,038


$     1,566,020






LIABILITIES AND EQUITY





Current liabilities:





     Bank lines of credit


$              1,757


$                    -

     Accounts payable


73,099


69,978

     Accrued expenses and other current liabilities


155,491


174,214

     Income taxes payable


11,002


1,788

     Deferred revenue


177,236


169,989

         Total current liabilities


418,585


415,969






Income taxes payable, non-current


35,019


34,722

Deferred income taxes, non-current


1,157


2,554

Other non-current liabilities


16,007


16,644

         Total liabilities


470,768


469,889






Commitments and contingencies










Equity:





  MICROS Systems, Inc. shareholders' equity:





     Common stock


1,918


2,008

     Capital in excess of par


-


107,662

     Retained earnings


1,136,763


1,000,822

     Accumulated other comprehensive loss


(23,625)


(17,847)

          Total MICROS Systems, Inc. shareholders' equity


1,115,056


1,092,645

  Noncontrolling interest


3,214


3,486

Total Equity


1,118,270


1,096,131






Total Liabilities and Equity


$      1,589,038


$     1,566,020

 

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - in thousands)




















 Fiscal Year Ended June 30, 






2013


2012









Cash flows from operating activities:





Net income

$        171,847


$        167,101


Adjustments to reconcile net income to net cash provided by operating activities:





    Depreciation and amortization

22,573


16,177


    Share-based compensation

21,102


16,501


    Amortization of capitalized software

5,208


7,148


    Provision for losses on accounts receivable

3,563


7,137


    Gain on sales of long-term investments

(4,094)


-


    Other-than-temporary impairment losses on investments, net

600


4,000


    Provision for (benefit from) deferred income taxes

(2,702)


(3,436)


    Net (gain) loss on disposal of property, plant and equipment

-


642


    Other

-


336


    Changes in operating assets and liabilities (net of impact of acquisitions):





        Decrease (increase) in accounts receivable

2,430


(40,095)


        Increase in inventory

(5,302)


(1,751)


        Increase in prepaid expenses and other assets

(7,833)


(1,790)


        Increase in accounts payable

3,163


2,507


        (Decrease) increase in accrued expenses and other current liabilities

(13,682)


2,551


        Decrease in income taxes assets and liabilities

(2,587)


(1,755)


        Increase in deferred revenue

9,239


4,676


Net cash flows provided by operating activities

203,525


179,949









Cash flows from investing activities:





Proceeds from maturities of investments

56,620


158,819


Proceeds from sales of investments

42,119


19,655


Purchases of investments

(186,371)


(78,816)


Purchases of property, plant and equipment

(23,282)


(17,468)


Internally developed software costs

(4,290)


(7,197)


Net cash paid for acquisitions, net of cash acquired

(4)


(258,940)


Other


157


67


Net cash flows used in investing activities

(115,051)


(183,880)









Cash flows from financing activities:





Repurchases of common stock

(176,603)


(59,199)


Proceeds from stock option exercises

9,056


14,933


Proceeds from advance on line of credit

4,014


-


Realized tax benefits from stock option exercises

3,323


4,717


Principal payments on line of credit

(2,061)


-


Cash paid for acquisition of non-controlling interest

(846)


(4,212)


Other


9


(123)


Net cash flows used in financing activities

(163,108)


(43,884)









Effect of exchange rate changes on cash and cash equivalents

(2,129)


(50,658)









Net decrease in cash and cash equivalents

(76,763)


(98,473)









Cash and cash equivalents at beginning of year

562,786


661,259

Cash and cash equivalents at end of year

$        486,023


$        562,786

SOURCE MICROS Systems, Inc.



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