MICROS Reports Fiscal 2011 First Quarter Results

  • Oracle Hospitality Food and Beverage Solutions
  • 11.01.10
MICROS Systems, Inc. (Nasdaq: MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2011 first quarter ended September 30, 2010.

Financial highlights include:

  • Revenue for the quarter was $233.4 million, an increase of $22.0 million, or 10.4 percent, over the same period last year.
  • GAAP net income for the quarter was $31.6 million, an increase of $7.5 million, or 30.9 percent, over the same period last year.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.39 per share, an increase of $0.09, or 30 percent over the same period last year.
  • Non-GAAP financial results for the quarter, excluding the effect of charges for stock options and the redemption of one of our auction rate securities, are as follows:                                                         - Non-GAAP net income for the quarter was $33.4 million, an increase of $6.7 million, or 25.3 percent, over the same period last year.
    - Non-GAAP diluted EPS for the quarter was $0.41 per share an increase of $0.08, or 24.2 percent, over the same period last year.

The financial results for the first fiscal quarter exceeded consensus expectations.

Tom Giannopoulos, MICROS's chairman and CEO, said, "We are very pleased with the results for our fiscal quarter, which included record operating income, net income and EPS for a first fiscal quarter."

MICROS's financial guidance for fiscal 2011 remains the same as previously provided in August 2010 with revenue between $1.0 billion and $1.005 billion and net income between $140 million and $142 million.

MICROS's stock is traded through NASDAQ under the symbol MCRS.  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 28, 2010.  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 through 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

Sept. 30,


2010


2009

Revenue:




 Hardware

$         44,266


$43,307

 Software

27,889


24,692

 Service

161,259


143,402

Total revenue

233,414


211,401





Cost of sales:




 Hardware

29,955


28,052

 Software

5,826


5,387

 Service

71,178


62,136

 Stock option expense

35


0

Total cost of sales

106,994


95,575





Gross margin

126,420


115,826





 Selling, general and administrative expenses

62,191


62,217

 Research and development expenses

10,661


10,869

 Depreciation and amortization

4,118


3,842

 Stock option expense

2,610


3,051

Total operating expenses

79,580


79,979





Income from operations

46,840


35,847

Non-operating income (expense):




  Interest income, net

1,056


1,051

 Change in credit based impairment, net of realized loss on redemption

92


(387)

 Other non-operating expense, net

(900)


(7)

Total non-operating income, net

248


657





Income before taxes

47,088


36,504

Income tax provision

15,393


12,133

Net income

31,695


24,371

Less:  Net income attributable to noncontrolling interest

(78)


(224)





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

$         31,617


$24,147





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

$             0.39


$    0.30

Weighted-average number of shares outstanding - diluted

82,023


81,314



Reconciliation of GAAP Net Income and EPS attributable to MICROS S ystems, Inc. to
Non-GAAP Net Income and EPS attributable to MICROS Systems, Inc.

Net Income attributable to MICROS Systems, Inc.

$         31,617


$24,147

Add back:




 Stock option expense




       Selling, general and administrative expenses

             2,484


    2,904

       Research and development expenses

                126


       147

       Cost of sales

                  35


          -  


             2,645


    3,051

 Change in credit based impairment, net of realized loss on redemption

                 (92)


       387

Total Add back

             2,553


    3,438





Subtract tax effect on stock option expense

                789


       942

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

$         33,381


$26,643





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

$             0.41


$    0.33









MICROS believes the inclusion of the above non-GAAP measure will be useful to investors because it will enhance the comparability of its current period results to prior periods' results without comparable charges.  MICROS also believes inclusion of this measure will enhance comparability of its results to results of its 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, MICROS management uses this measure to evaluate its operating performance and compare the company's results to its competitors. Management also uses this measure as a metric to measure performance under its 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 the company's GAAP financial measures.  They are subject to a number of important limitations and should be considered only in conjunction with its 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)






Sept. 30,
2010


June 30,
2010

ASSETS




Current assets:




    Cash and cash equivalents and short-term investments

$        617,879


$   545,298

    Accounts receivable, net

156,704


153,066

    Inventory, net

35,609


35,103

    Deferred income taxes

20,092


19,624

    Prepaid expenses and other current assets

33,641


27,004

          Total current assets

863,925


780,095





Long-term investments

63,014


59,884

Property, plant and equipment, net

28,424


27,349

Deferred income taxes, non-current

13,612


13,556

Goodwill

217,721


213,825

Intangible assets, net

18,899


19,590

Purchased and internally developed software costs, net

17,783


17,468

Other assets

6,960


6,524

Total Assets

$     1,230,338


$1,138,291





LIABILITIES AND EQUITY




Current liabilities:




    Bank lines of credit

$                  -


$       1,442

    Accounts payable

45,306


44,783

    Accrued expenses and other current liabilities

119,425


135,469

    Income taxes payable

3,468


5,856

    Deferred revenue

147,910


124,498

        Total current liabilities

316,109


312,048





Income taxes payable, non-current

23,439


22,737

Deferred income taxes, non-current

2,808


2,590

Other non-current liabilities

10,482


11,304

        Total liabilities

352,838


348,679





Commitments and contingencies








Equity:




 MICROS Systems, Inc. shareholders’ equity:




    Common stock

2,014


2,001

    Capital in excess of par

130,926


117,462

    Retained earnings

721,397


689,750

    Accumulated other comprehensive income

16,498


(25,833)

         Total MICROS Systems, Inc. shareholders’ equity

870,835


783,380

 Noncontrolling interest

6,665


6,232

Total Equity

877,500


789,612





Total Liabilities and Equity

$     1,230,338


$1,138,291





Related Articles
want to read more articles like this?

want to read more articles like this?

Sign up to receive our twice-a-month Watercooler and Siegel Sez Newsletters and never miss another article or news story.