MICROS Reports Fiscal 2013 Second Quarter Results
COLUMBIA, Md., Jan. 24, 2013 /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 2013 second quarter ended December 31, 2012.
FINANCIAL HIGHLIGHTS
- Revenue for the quarter was $324.5 million, an increase of $54.1 million, or 20.0%, versus the same period last year.
- Revenue for the six-month period was $624.4 million, an increase of $97.4 million, or 18.5% over the same period last year.
- GAAP net income for the quarter was $44.1 million, an increase of $5.8 million, or 15.2%, over the same period last year.
- GAAP net income for the six-month period was $85.2 million, an increase of $9.6 million, or 12.8%, over the same period last year.
- GAAP diluted earnings per share (EPS) for the quarter was $0.54 per share, an increase of $0.07, or 14.9%, over the same period last year.
- GAAP diluted EPS for the six-month period was $1.04, an increase of $0.12, or 13.0%, 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 $47.0 million, an increase of $4.9 million, or 11.6%, over the year ago period.
- Non-GAAP net income for the six-month period was $93.4 million, an increase of $12.0 million, or 14.7%, over the year ago period.
- Non-GAAP diluted EPS for the quarter was $0.58, an increase of $0.07, or 13.7%, over the year ago period.
- Non-GAAP diluted EPS for the six-month period was $1.14, an increase of $0.15, or 15.2%, over the year ago period.
MICROS’s revenue, net income and EPS results were Company records for a second fiscal quarter.
Peter A. Altabef, MICROS’s President and CEO, stated, “We are pleased with the results of the second fiscal quarter as our business progresses across all regions of the world.”
MICROS’s financial guidance for fiscal 2013 remains the same as previously provided in August 2012 with revenue between $1.3 billion and $1.325 billion and Non-GAAP EPS between $2.40 and $2.44.
NEW STOCK BUYBACK APPROVED
On January 22, 2013, our Board of Directors approved the purchase of an additional two million shares of our common stock. The new plan will take the effect once the current two million share buyback plan of August 2010 is completed. 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 January 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.
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,
------------ ------------
2012 2011 2012 2011
---- ---- ---- ----
Revenue:
Hardware $67,245 $57,427 $131,004 $105,837
Software 38,747 34,552 69,525 67,824
Service 218,528 178,424 423,842 353,300
Total revenue 324,520 270,403 624,371 526,961
------- ------- ------- -------
Cost of sales:
Hardware 43,295 36,637 86,352 66,800
Software 5,257 4,294 10,621 9,153
Service 103,767 77,103 201,864 154,186
Stock option expense 82 48 155 85
Total cost of sales 152,401 118,082 298,992 230,224
------- ------- ------- -------
Gross margin 172,119 152,321 325,379 296,737
Selling, general and administrative expenses 79,952 76,549 152,600 149,301
Research and development expenses 17,526 12,174 33,891 23,200
Depreciation and amortization 4,207 3,624 8,324 7,860
Stock option expense 7,233 5,729 11,371 8,696
Amortization expense - Torex acquisition 1,314 0 2,722 0
Restructuring charge 296 0 1,693 0
Total operating expenses 110,528 98,076 210,601 189,057
------- ------ ------- -------
Income from operations 61,591 54,245 114,778 107,680
Non-operating income (expense):
Interest income, net 1,129 1,765 2,305 3,579
Realized gain on sale of auction rate securities 3,494 0 3,494 0
Other non-operating expense, net (635) (350) (964) 198
Total non-operating income, net 3,988 1,415 4,835 3,777
----- ----- ----- -----
Income before taxes 65,579 55,660 119,613 111,457
Income tax provision 21,289 17,477 34,257 35,891
------ ------ ------ ------
Net income 44,290 38,183 85,356 75,566
Less: Net (income) loss attributable to noncontrolling interest (204) 102 (206) (49)
---- --- ---- ---
Net Income attributable to MICROS Systems, Inc. (GAAP) $44,086 $38,285 $85,150 $75,517
======= ======= ======= =======
Net Income per diluted common share attributable to $0.54 $0.47 $1.04 $0.92
MICROS Systems, Inc.
Weighted-average number of shares outstanding - diluted 81,289 81,971 81,643 82,190
====== ====== ====== ======
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. $44,086 $38,285 $85,150 $75,517
Add back:
Stock option expense
Selling, general and administrative expenses 6,905 5,424 10,605 8,082
Research and development expenses 328 305 766 614
Cost of sales 82 48 155 85
7,315 5,777 11,526 8,781
Regalized gain on sale of auction rate securities (3,494) 0 (3,494) 0
Torex amortization expense 1,314 0 2,722 0
Restructuring charge 296 0 1,693 0
Total add back 5,431 5,777 12,447 8,781
Subtract tax effect on:
Stock option expense 2,391 1,959 3,655 2,902
Torex amortization expense 59 0 118 0
Restructuring charge 83 0 432 0
Non-GAAP Net Income attributable to MICROS Systems, Inc. $46,984 $42,103 $93,392 $81,396
======= ======= ======= =======
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc. $0.58 $0.51 $1.14 $0.99
===== ===== ===== =====
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, June 30,
2012 2012
---- ----
ASSETS
Current
assets:
Cash
and
cash
equivalents
and
short-
term
investments $631,833 $582,038
Accounts
receivable,
net 215,549 235,433
Inventory 52,728 44,278
Deferred
income
taxes 13,313 17,004
Prepaid
expenses
and
other
current
assets 54,995 37,343
------ ------
Total
current
assets 968,418 916,096
Long-
term
investments 5,579 34,456
Property,
plant
and
equipment,
net 39,350 35,435
Deferred
income
taxes,
non-
current 54,602 50,326
Goodwill 453,956 444,117
Intangible
assets,
net 41,441 45,024
Purchased
and
internally
developed
software
costs,
net 34,986 33,980
Other
assets 6,837 6,586
----- -----
Total
Assets $1,605,169 $1,566,020
========== ==========
LIABILITIES
AND
EQUITY
Current
liabilities:
Accounts
payable $63,128 $69,978
Accrued
expenses
and
other
current
liabilities 145,124 174,214
Income
taxes
payable 11,956 1,788
Deferred
revenue 164,760 169,989
------- -------
Total
current
liabilities 384,968 415,969
Income
taxes
payable,
non-
current 33,136 34,722
Deferred
income
taxes,
non-
current 866 2,554
Other
non-
current
liabilities 15,988 16,644
------ ------
Total
liabilities 434,958 469,889
Commitments
and
contingencies
Equity:
MICROS
Systems,
Inc.
shareholders'
equity:
Common
stock 1,984 2,008
Capital
in
excess
of
par 71,773 107,662
Retained
earnings 1,085,972 1,000,822
Accumulated
other
comprehensive
income
(loss) 7,389 (17,847)
----- -------
Total
MICROS
Systems,
Inc.
shareholders'
equity 1,167,118 1,092,645
Noncontrolling
interest 3,093 3,486
----- -----
Total
Equity 1,170,211 1,096,131
--------- ---------
Total
Liabilities
and
Equity $1,605,169 $1,566,020
========== ==========
Contact: Peter J. Rogers, Jr.
Executive Vice President, Investor Relations
443-285-8059
SOURCE MICROS Systems, Inc.
