Record Third Quarter Revenue, Net Income and EPS
Results Exceed Expectations
Columbia, MD - April 26, 2012-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
2012 third quarter ended March 31, 2012.
FINANCIAL HIGHLIGHTS
Revenue for the quarter was $278.0 million, an increase
of $24.9 million, or 9.8%, versus the same period last
year.
Revenue for the nine-month period was $805.0 million,
an increase of $71.3 million, or 9.7% over the same
period last year.
GAAP net income for the quarter was $43.2 million, an
increase of $4.7 million, or 12.1%, over the same
period last year.
GAAP net income for the nine-month period was $118.8
million, an increase of $16.2 million, or 15.8%, over
the same period last year.
GAAP diluted earnings per share (EPS) for the quarter
was $0.53 per share, an increase of $0.06, or 12.8%,
over the same period last year.
GAAP diluted EPS for the nine-month period was $1.45,
an increase of $0.21, or 16.9%, over the same period
last year.
Non-GAAP financial results, excluding the effect of
charges for stock options, are as follows:
Non-GAAP net income for the quarter was $45.6
million, an increase of $5.2 million, or 13.0%,
over the year ago period.
Non-GAAP net income for the nine-month period was
$127.0 million, an increase of $16.3 million, or
14.8%, over the year ago period.
Non-GAAP diluted EPS for the quarter was $0.56, an
increase of $0.07, or 14.3%, over the year ago
period.
Non-GAAP diluted EPS for the nine-month period was
$1.55, an increase of $0.21, or 15.7%, over the
year ago period.
MICROS's revenue, net income and EPS results were
Company records for a third fiscal quarter and exceeded
consensus expectations.
Tom Giannopoulos, MICROS's Chairman and CEO, stated, "We
are very pleased with our record results for the third
fiscal quarter amidst a challenging economy. We continue
to execute well with new products and sales initiatives.
We look forward to a successful conclusion to our fiscal
year 2012."
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 26, 2012.
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.
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,
2012
2011
2012
2011
Revenue:
Hardware
$ 63,045
$ 49,901
$ 168,881
$ 142,008
Software
37,577
31,075
105,402
92,043
Service
177,422
172,217
530,722
499,673
Total revenue
278,044
253,193
805,005
733,724
Cost of sales:
Hardware
40,187
31,827
106,988
93,135
Software
5,838
5,288
14,991
16,034
Service
79,426
74,675
233,611
219,299
Stock option expense
58
25
143
87
Total cost of sales
125,509
111,815
355,733
328,555
Gross margin
152,535
141,378
449,272
405,169
Selling, general and administrative expenses
75,938
71,739
225,241
202,282
Research and development expenses
13,417
11,649
36,616
33,116
Depreciation and amortization
3,523
3,548
11,383
11,911
Litigation reserve
0
0
0
3,000
Stock option expense
3,710
2,536
12,406
9,434
Total operating expenses
96,588
89,472
285,646
259,743
Income from operations
55,947
51,906
163,626
145,426
Non-operating income (expense):
Interest income, net
1,605
1,013
5,185
3,465
Interest expense - litigation reserve
-
-
-
(360)
Change in credit based impairment, net of realized
gain on redemption
-
-
-
19
Other non-operating income (expense), net
6
(337)
203
(732)
Total non-operating income, net
1,611
676
5,388
2,392
Income before taxes
57,558
52,582
169,014
147,818
Income tax provision
14,102
13,724
49,992
44,766
Net income
43,456
38,858
119,022
103,052
Less: Net income attributable to
noncontrolling interest
(209)
(279)
(258)
(529)
Net Income attributable to MICROS Systems, Inc.
(GAAP)
$ 43,247
$ 38,579
$ 118,764
$ 102,523
Net Income per diluted common share attributable
to
MICROS Systems, Inc.
$ 0.53
$ 0.47
$ 1.45
$ 1.24
Weighted-average number of shares outstanding -
diluted
82,008
82,913
82,127
82,562
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.
$ 43,247
$ 38,579
$ 118,764
$ 102,523
Add back:
Stock option expense
Selling, general and administrative expenses
3,446
2,419
11,528
9,066
Research and development expenses
264
117
878
368
Cost of sales
58
25
143
87
3,768
2,561
12,549
9,521
Litigation reserve, including accrued interest
expense
-
-
-
3,360
Credit based impairment charge, net of realized gain
on redemption
-
-
-
(19)
Total add back
3,768
2,561
12,549
12,862
Subtract tax effect on:
Stock option expense
1,441
802
4,344
3,457
Litigation reserve, including accrued interest
expense
-
-
-
1,280
Non-GAAP Net Income attributable to MICROS Systems,
Inc.
$ 45,574
$ 40,338
$ 126,969
$ 110,648
Non-GAAP Net Income per Diluted Common Share
attributable to MICROS Systems, Inc.
$ 0.56
$ 0.49
$ 1.55
$ 1.34
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,
2012
June 30,
2011
ASSETS
Current assets:
Cash and cash equivalents and short-term investments
$ 816,019
$ 780,265
Accounts receivable, net
208,304
181,833
Inventory
36,715
38,119
Deferred income taxes
20,602
21,036
Prepaid expenses and other current assets
40,793
30,454
Total current assets
1,122,433
1,051,707
Long-term investments
47,521
46,226
Property, plant and equipment, net
32,183
28,145
Deferred income taxes, non-current
23,220
20,798
Goodwill
239,152
242,319
Intangible assets, net
15,519
19,293
Purchased and internally developed software costs,
net
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