MICROS Reports Fiscal 2014 First Quarter Results RECORD FIRST FISCAL QUARTER REVENUE

COLUMBIA, Md., Oct. 24, 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 2014 first quarter ended September 30, 2013. 

FINANCIAL HIGHLIGHTS                                                                                                     

  • Revenue for the quarter was $314.7 million, an increase of $14.9 million, or 5.0%, over the same period last year. 
  • GAAP net income for the quarter was $32.3 million, a decrease of $8.8 million, or 21.4%, versus the same period last year
  • GAAP diluted earnings per share (EPS) for the quarter was $0.42 per share, a decrease of $0.08, or 16.0%, versus the same period last year.
  • Non-GAAP financial results, excluding the effect of charges for stock options, a litigation charge and accrued interest, amortization of Torex intangibles, restructuring of Torex, and a one-time gain on a settlement of auction rate securities are as follows:
    • Non-GAAP net income for the quarter was $38.6 million, a decrease of $7.8 million, or 16.9%, versus the same period last year.
    • Non-GAAP diluted EPS for the quarter was $0.50, a decrease of $0.07, or 12.3%, versus the same  period last year.
  • MICROS's revenue was a Company record for a first fiscal quarter.

Peter A. Altabef,  MICROS's  President and CEO, stated, " We are pleased with our revenue growth in this environment, with especially strong growth in the United States and Canada."

MICROS's financial guidance for fiscal 2014 remains the same as previously provided in August 2013 with revenue between $1.295 and $1.32 Billion and Non-GAAP EPS between $2.46 and $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 October 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.

The MICROS logo is a registered trademark of MICROS Systems, Inc.
All other product and brand names are the property of their respective owners.

Contact:

Peter J. Rogers, Jr. 


Executive Vice President,  Investor Relations


443-285-8059


progers@micros.com

 


MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)











Three Months Ended


September 30,



2013


2012

Revenue:





Hardware

$      66,532


$     63,759


Software

34,361


30,778


Service

213,822


205,314

Total revenue

314,715


299,851






Cost of sales:





Hardware

43,247


43,057


Software

5,401


5,365


Service

103,640


98,096


Stock option expense

99


73

Total cost of sales

152,387


146,591






Gross margin

162,328


153,260







Selling, general and administrative expenses

78,026


72,648


Research and development expenses

18,878


16,366


Depreciation and amortization

4,394


4,117


Stock option expense

4,891


4,137


Torex amortization expense

775


1,408


Torex restructuring charge

216


1,397


Litigation charge

2,800


0

Total operating expenses

109,980


100,073






Income from operations

52,348


53,187

Non-operating income (expense):





Interest income, net

889


1,176


Interest expense - litigation charge

(900)


0


Gain on settlement - auction rate securities

338


0


Other non-operating income, net

152


(329)

Total non-operating income , net

479


847






Income before taxes

52,827


54,034

Income tax provision 

20,496


12,968

Net income

32,331


41,066

Less:  Net income attributable to noncontrolling interest

(60)


(2)






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

$      32,271


$     41,064






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

$           0.42


$          0.50

Weighted-average number of shares outstanding - diluted

77,712


81,969






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.

$      32,271


$     41,064

Add back:





Stock option expense





    Selling, general and administrative expenses

4,404


3,700


    Research and development expenses

487


437


    Cost of sales

99


73



4,990


4,210


Litigation charge, including accrued interest expense

3,700


0


Torex amortization expense

775


1,408


Torex restructuring charge

216


1,397


Gain on settlement - auction rate securities

(338)


0


Total add back

9,343


7,015






Subtract tax effect on:





Stock option expense

1,558


1,264


Litigation charge, including accrued interest expense

1,410


0


Torex amortization expense

22


59


Torex restructuring charge

49


349

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

$      38,575


$     46,407






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

$           0.50


$          0.57











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,
2013


June 30,
2013

ASSETS





Current assets:





     Cash and cash equivalents and short-term investments


$        595,559


$        634,069

     Accounts receivable, net


232,281


228,455

     Inventory


54,297


49,273

    Income taxes receivable


11,939


12,771

     Deferred income taxes


15,315


15,022

     Prepaid expenses and other current assets


58,772


44,648

           Total current assets


968,163


984,238






Long-term investments


0


0

Property, plant and equipment, net


51,729


44,127

Deferred income taxes, non-current


48,041


50,186

Goodwill


447,709


432,950

Intangible assets, net


38,151


37,754

Purchased and internally developed software costs, net


34,325


32,543

Other assets


7,488


7,240

Total Assets


$     1,595,606


$     1,589,038






LIABILITIES AND EQUITY





Current liabilities:





     Bank lines of credit


$                    -


$             1,757

     Accounts payable


71,479


73,099

     Accrued expenses and other current liabilities


150,750


155,491

     Income taxes payable


12,009


11,002

     Deferred revenue


203,366


177,236

         Total current liabilities


437,604


418,585






Income taxes payable, non-current


38,052


35,019

Deferred income taxes, non-current


1,186


1,157

Other non-current liabilities


16,004


16,007

         Total liabilities


492,846


470,768






Commitments and contingencies










Equity:





  MICROS Systems, Inc. stockholders' equity:





     Common stock


1,882


1,918

     Capital in excess of par


0


0

     Retained earnings


1,093,614


1,136,763

     Accumulated other comprehensive income (loss)


3,903


(23,625)

          Total MICROS Systems, Inc. stockholders' equity


1,099,399


1,115,056

  Noncontrolling interest


3,361


3,214

Total Equity


1,102,760


1,118,270






Total Liabilities and Equity


$     1,595,606


$     1,589,038

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - in thousands)














 Three Months Ended 






 September 30, 






2013


2012









Cash flows from operating activities:






Net income


$          32,331


$          41,066


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







Depreciation and amortization


5,169


5,525



Share-based compensation


4,990


4,210



Amortization of capitalized software


1,517


972



Provision for losses on accounts receivable


600


1,306



Litigation reserve, including interest expense


3,700


-



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


-


(41)



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







Decrease (increase) in accounts receivable


144


(5,957)




Increase in inventory


(4,082)


(3,828)




Increase in prepaid expenses and other assets


(12,851)


(9,033)




Decrease in accounts payable


(2,803)


(7,327)




Decrease in accrued expenses and other current liabilities


(10,074)


(30,379)




Increase (decrease) in income taxes assets and liabilities


7,863


(8,954)




Increase in deferred revenue


22,503


18,462


Net cash flows provided by operating activities


49,007


6,022









Cash flows from investing activities:






Proceeds from maturities of investments


39,369


16,553


Purchases of investments


(46,375)


(4,029)


Purchases of property, plant and equipment


(10,968)


(3,796)


Internally developed software costs


(2,028)


(850)


Net cash paid for acquisitions, net of cash acquired


-


(129)


Other



-


43


Net cash flows (used in) provided by investing activities


(20,002)


7,792









Cash flows from financing activities:






Repurchases of common stock


(91,603)


(13,165)


Proceeds from stock option exercises


10,137


4,364


Realized tax benefits from stock option exercises


886


1,370


Principal payments on line of credit


(1,795)


-


Other



(33)


(26)


Net cash flows used in financing activities


(82,408)


(7,457)









Effect of exchange rate changes on cash and cash equivalents


7,313


4,885









Net (decrease) increase in cash and cash equivalents


(46,090)


11,242









Cash and cash equivalents at beginning of year


486,023


562,786

Cash and cash equivalents at end of year


$        439,933


$        574,028

 

 

SOURCE MICROS Systems, Inc.



RELATED LINKS
http://www.micros.com

More by this Source

Best of Content We Love 2014 


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.