TechWeb

MICROS Reports Fiscal 2012 Second Quarter Results

Jan 26, 2012 (03:01 PM EST)
URL: http://www.techweb.com/show-press-release/X885805/micros-reports-fiscal-2012-second-quarter-results.html

RECORD SECOND QUARTER REVENUE, NET INCOME AND EPS RESULTS EXCEED EXPECTATIONS

COLUMBIA, Md., Jan. 26, 2012 /PRNewswire/ -- MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2012 second quarter ended December 31, 2011.  

FINANCIAL HIGHLIGHTS

  • Revenue for the quarter was $270.4 million, an increase of $23.3 million, or 9.4%, versus the same period last year.  
  • Revenue for the six-month period was $527.0 million, an increase of $46.4 million, or 9.7% over the same period last year.
  • GAAP net income for the quarter was $38.3 million, an increase of $6.0 million, or 18.4%, over the same period last year.
  • GAAP net income for the six-month period was $75.5 million, an increase of $11.6 million, or 18.1%, over the same period last year.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.47 per share, an increase of $0.08, or 20.5%, over the same period last year.
  • GAAP diluted EPS for the six-month period was $0.92, an increase of $0.14, or 17.9%, over the same period last year.
  • Non-GAAP financial results, excluding the effect of charges for stock options, an impairment charge for auction rate securities and a charge for a lawsuit, are as follows:
    • Non-GAAP net income for the quarter was $42.1 million, an increase of $5.2 million, or 14.0%, over the year ago period.
    • Non-GAAP net income for the six-month period was $81.4 million, an increase of $11.1 million, or 15.8%, over the year ago period.
    • Non-GAAP diluted EPS for the quarter was $0.51, an increase of $0.06, or 13.3%, over the year ago period.
    • Non-GAAP diluted EPS for the six-month period was $0.99, an increase of $0.14, or 16.5%, over the year ago period.

MICROS's revenue, net income and EPS results were Company records for a second fiscal quarter and exceeded consensus expectations.

Tom Giannopoulos, MICROS's Chairman and CEO, stated, "We are extremely pleased with our record results for the quarter and first half of our fiscal year.  We continue to execute well despite the uncertain business conditions around the world. "

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 January 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.

Contact:  Peter J. Rogers, Jr.
Executive Vice President, Investor Relations
443-285-8059


MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)




























Three Months Ended


Six Months Ended





December 31,


December 31,






2011


2010


2011


2010

Revenue:












Hardware




$        57,427


$        47,841


$       105,837


$        92,107


Software




34,552


33,079


67,824


60,968


Service




178,424


166,197


353,300


327,456

Total revenue




270,403


247,117


526,961


480,531













Cost of sales:












Hardware




36,637


31,353


66,800


61,308


Software




4,294


4,921


9,153


10,747


Service




77,103


73,446


154,186


144,624


Stock option expense




48


27


85


62

Total cost of sales




118,082


109,747


230,224


216,741













Gross margin




152,321


137,370


296,737


263,790














Selling, general and administrative expenses




76,549


68,351


149,301


130,542


Research and development expenses




12,174


10,806


23,200


21,467


Depreciation and amortization




3,624


4,243


7,860


8,362


Litigation reserve




0


3,000


0


3,000


Stock option expense




5,729


4,289


8,696


6,899

Total operating expenses




98,076


90,689


189,057


170,270













Income from operations




54,245


46,681


107,680


93,520

Non-operating income (expense):












Interest income, net




1,765


1,397


3,579


2,453


Interest expense - litigation reserve




-


(360)


-


(360)


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



-


(73)


-


19


Other non-operating (expense) income, net




(350)


505


198


(395)

Total non-operating income, net




1,415


1,469


3,777


1,717













Income before taxes



55,660


48,150


111,457


95,237

Income tax provision




17,477


15,649


35,891


31,042

Net income



38,183


32,501


75,566


64,195

Less:  Net loss (income) attributable to noncontrolling interest




102


(173)


(49)


(251)













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




$        38,285


$        32,328


$         75,517


$        63,944













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



$            0.47


$            0.39


$             0.92


$            0.78

Weighted-average number of shares outstanding - diluted




81,971


82,717


82,190


82,390













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.



$        38,285


$        32,328


$         75,517


$        63,944

Add back:












Stock option expense












   Selling, general and administrative expenses




5,424


4,164


8,082


6,648


   Research and development expenses




305


125


614


251


   Cost of sales




48


27


85


62






5,777


4,316


8,781


6,961


Litigation reserve, including accrued interest expense




-


3,360


-


3,360


Credit based impairment charge, net of realized gain on redemption




-


73


-


(19)


Total add back




5,777


7,749


8,781


10,302













Subtract tax effect on:












Stock option expense




1,959


1,866


2,902


2,655


Litigation reserve, including accrued interest expense




-


1,280


-


1,280

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





$        42,103


$        36,931


$         81,396


$        70,311













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



$            0.51


$            0.45


$             0.99


$            0.85

























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)








December 31,
2011


June 30,
2011

ASSETS





Current assets:





    Cash and cash equivalents and short-term investments


$               739,505


$             780,265

    Accounts receivable, net


179,008


181,833

    Inventory, net


37,293


38,119

    Deferred income taxes


19,045


21,036

    Prepaid expenses and other current assets


46,553


30,454

          Total current assets


1,021,404


1,051,707






Long-term investments


45,525


46,226

Property, plant and equipment, net


29,247


28,145

Deferred income taxes, non-current


24,007


20,798

Goodwill


236,563


242,319

Intangible assets, net


16,311


19,293

Purchased and internally developed software costs, net


18,505


18,710

Other assets


5,868


5,820

Total Assets


$            1,397,430


$          1,433,018






LIABILITIES AND EQUITY





Current liabilities:





    Accounts payable


$                 50,060


$               54,851

    Accrued expenses and other current liabilities


142,070


148,901

    Income taxes payable


5,631


7,705

    Deferred revenue


137,569


143,238

        Total current liabilities


335,330


354,695






Income taxes payable, non-current


36,149


32,309

Deferred income taxes, non-current


7,120


8,261

Other non-current liabilities


14,594


14,502

        Total liabilities


393,193


409,767






Commitments and contingencies










Equity:





 MICROS Systems, Inc. shareholders’ equity:





    Common stock


1,998


2,020

    Capital in excess of par


97,351


132,529

    Retained earnings


909,356


833,839

    Accumulated other comprehensive income


(10,510)


48,323

         Total MICROS Systems, Inc. shareholders’ equity


998,195


1,016,711

 Noncontrolling interest


6,042


6,540

Total Equity


1,004,237


1,023,251






Total Liabilities and Equity


$            1,397,430


$          1,433,018








SOURCE MICROS Systems, Inc.