MICROS Reports Fiscal 2013 Third Quarter Results

RECORD THIRD QUARTER REVENUE, NET INCOME AND EPS

NEW STOCK BUYBACK PLAN APPROVED

25 Apr, 2013, 16:02 ET from MICROS Systems, Inc.

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.



RELATED LINKS

http://www.micros.com