MICROS Reports Fiscal 2013 Third Quarter Results RECORD THIRD QUARTER REVENUE, NET INCOME AND EPS

NEW STOCK BUYBACK PLAN APPROVED

COLUMBIA, Md., April 25, 2013 /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 third quarter ended March 31, 2013. 

FINANCIAL HIGHLIGHTS                                                                                                    

  • Revenue for the quarter was $315.1 million, an increase of $37.1 million, or 13.3%, over the same period last year. 
  • Revenue for the nine-month period was $939.5 million, an increase of $134.5 million, or 16.7%, over the same period last year.
  • GAAP net income for the quarter was $44.3 million, an increase of $1.0 million, or 2.4%, over the same period last year.
  • GAAP net income for the nine-month period was $129.4 million, an increase of $10.7 million, or 9.0%, over the same period last year.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.55 per share, an increase of $0.02, or 3.8%, over the same period last year.
  • GAAP diluted EPS for the nine-month period was $1.59, an increase of $0.14, or 9.7%, 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 $49.6 million, an increase of $4.0 million, or 8.9%, over the same period last year.
    • Non-GAAP net income for the nine-month period was $143.0 million, an increase of $16.0 million, or 12.6%, over the same period last year.
    • Non-GAAP diluted EPS for the quarter was $0.62, an increase of $0.06, or 10.7%, over the same  period last year.
    • Non-GAAP diluted EPS for the nine-month period was $1.76, an increase of $0.21, or 13.5%, over the same period last year.
  • MICROS's revenue, net income and EPS results were Company records for a third fiscal quarter.

Peter A. Altabef, MICROS's  President and CEO, stated, "We continue to execute in a difficult environment and I am confident in our ability to meet not just the challenges but the opportunities which lie ahead."

MICROS's financial guidance for fiscal 2013 is now for revenue between $1.256 billion and $1.272 billion and Non-GAAP EPS between $2.37 and $2.39.  Fiscal fourth quarter guidance is for revenue between $317.0 million and $333.0 million and non-GAAP EPS between $0.61 and $0.63.

NEW STOCK BUYBACK APPROVED

On April 23, 2013, our Board of Directors approved the purchase of $225.0 million of our common stock.  The new plan will take effect once the current two million share buyback plan of January 2013 is completed, of which approximately 1.4 million shares remain for repurchase.   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 April 25, 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.
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


Nine Months Ended




March 31,


March 31,





2013


2012


2013


2012



Revenue:











Hardware

$             64,523


$          63,045


$           195,527


$           168,881




Software

36,821


37,577


106,346


105,402




Service

213,761


177,422


637,603


530,722



Total revenue

315,105


278,044


939,476


805,005














Cost of sales:











Hardware

41,514


40,187


127,867


106,988




Software

5,813


5,838


16,434


14,991




Service

102,201


79,426


304,064


233,611




Stock option expense

89


58


244


143



Total cost of sales

149,617


125,509


448,609


355,733














Gross margin

165,488


152,535


490,867


449,272















Selling, general and administrative expenses

78,254


75,938


230,854


225,241




Research and development expenses

17,970


13,417


51,860


36,616




Depreciation and amortization

4,008


3,523


12,332


11,383




Stock option expense

4,651


3,710


16,022


12,406




Amortization expense - Torex acquisition

1,694


0


4,416


0




Restructuring charge

760


0


2,453


0



Total operating expenses

107,337


96,588


317,937


285,646














Income from operations

58,151


55,947


172,930


163,626



Non-operating income (expense):











Interest income, net

919


1,605


3,223


5,185




Realized gain on sale of auction rate securities

0


0


3,494


0




Other non-operating expense, net

645


6


(319)


203



Total non-operating income, net

1,564


1,611


6,398


5,388














Income before taxes

59,715


57,558


179,328


169,014



Income tax provision 

15,370


14,102


49,627


49,992



Net income

44,345


43,456


129,701


119,022



Less:  Net income attributable to noncontrolling interest

(81)


(209)


(287)


(258)














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

$             44,264


$          43,247


$           129,414


$           118,764














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

$                  0.55


$               0.53


$                  1.59


$                  1.45



Weighted-average number of shares outstanding - diluted

80,502


82,008


81,272


82,127














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.

$             44,264


$          43,247


$           129,414


$           118,764



Add back:











Stock option expense











    Selling, general and administrative expenses

4,161


3,446


14,766


11,528




    Research and development expenses

490


264


1,256


878




    Cost of sales

89


58


244


143





4,740


3,768


16,266


12,549




Realized gain on sale of auction rate securities

0


0


(3,494)


0




Torex amortization expense

1,694


0


4,416


0




Restructuring charge

760


0


2,453


0




Total add back

7,194


3,768


19,641


12,549














Subtract tax effect on:











Stock option expense

1,570


1,441


5,225


4,344




Torex amortization expense

59


0


177


0




Restructuring charge

208


0


641


0



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

$             49,621


$          45,574


$           143,012


$           126,969














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

$                  0.62


$               0.56


$                  1.76


$                  1.55


























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)








March 31,
2013


June 30,
2012

ASSETS





Current assets:





     Cash and cash equivalents and short-term investments


$         669,352


$         582,038

     Accounts receivable, net


238,728


235,433

     Inventory


54,522


44,278

     Deferred income taxes


14,549


17,004

     Prepaid expenses and other current assets


54,595


37,343

           Total current assets


1,031,746


916,096






Long-term investments


0


34,456

Property, plant and equipment, net


40,768


35,435

Deferred income taxes, non-current


50,029


50,326

Goodwill


436,984


444,117

Intangible assets, net


39,694


45,024

Purchased and internally developed software costs, net


33,188


33,980

Other assets


6,845


6,586

Total Assets


$      1,639,254


$     1,566,020






LIABILITIES AND EQUITY





Current liabilities:





     Bank lines of credit


$              3,981


$                    -

     Accounts payable


64,763


69,978

     Accrued expenses and other current liabilities


147,271


174,214

     Income taxes payable


10,725


1,788

     Deferred revenue


201,452


169,989

         Total current liabilities


428,192


415,969






Income taxes payable, non-current


33,443


34,722

Deferred income taxes, non-current


2,645


2,554

Other non-current liabilities


15,586


16,644

         Total liabilities


479,866


469,889






Commitments and contingencies










Equity:





  MICROS Systems, Inc. shareholders' equity:





     Common stock


1,966


2,008

     Capital in excess of par


43,336


107,662

     Retained earnings


1,130,236


1,000,822

     Accumulated other comprehensive loss


(19,290)


(17,847)

          Total MICROS Systems, Inc. shareholders' equity


1,156,248


1,092,645

  Noncontrolling interest


3,140


3,486

Total Equity


1,159,388


1,096,131






Total Liabilities and Equity


$      1,639,254


$     1,566,020






 

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - in thousands)








 Nine Months Ended 



 March 31, 



2013


2012






Net cash flows provided by operating activities

$        139,895


$        131,622






Cash flows from investing activities:





Proceeds from maturities of investments

24,685


108,372


Proceeds from sales of auction rate securities

42,119


-


Purchases of investments

(108,423)


(78,671)


Purchases of property, plant and equipment

(15,692)


(13,418)


Internally developed software costs

(3,398)


(5,870)


Net cash paid for acquisitions

(367)


(593)


Other

68


(51)


  Net cash flows (used in) provided by investing activities

(61,008)


9,769






Cash flows from financing activities:





Repurchases of common stock

(90,887)


(53,652)


Proceeds from stock option exercises

7,326


12,096


Proceed from advance on line of credit

4,014


-


Realized tax benefits from stock option exercises

3,069


4,884


Cash paid for acquisition of non-controlling interest

(846)


(4,212)


Other

(70)


(93)


  Net cash flows used in financing activities

(77,394)


(40,977)






Effect of exchange rate changes on cash and cash equivalents

1,419


(27,025)






Net increase in cash and cash equivalents

2,912


73,389






Cash and cash equivalents at beginning of period

562,786


661,259

Cash and cash equivalents at end of period

$        565,698


$        734,648






 

 

SOURCE MICROS Systems, Inc.



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