MICROS Reports Fiscal 2013 Second Quarter Results

RECORD SECOND QUARTER REVENUE, NET INCOME AND EPS

NEW STOCK BUYBACK PLAN APPROVED

24 Jan, 2013, 16:02 ET from MICROS Systems, Inc.

COLUMBIA, Md., Jan. 24, 2013 /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 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

 

Contact: Peter J. Rogers, Jr. Executive Vice President, Investor Relations 443-285-8059

SOURCE MICROS Systems, Inc.



RELATED LINKS

http://www.micros.com