MCRS (MM)

Record First Quarter Revenue, Net Income and EPS COLUMBIA, Md., Oct. 30 /PRNewswire-FirstCall/ -- MICROS Systems, Inc. (NASDAQ:MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2009 first quarter ended September 30, 2008. FINANCIAL HIGHLIGHTS -- Revenue for the quarter was $244.1 million, an increase of $27.6 million, or 12.7%, over the same period last year. -- GAAP net income for the quarter was $24.9 million, an increase of $3.6 million, or 16.8%, over the same period last year. -- GAAP diluted earnings per share (EPS), was $0.30 per share, an increase of $0.05, or 20.0%, over the same period last year. -- Non-GAAP financial results, excluding the effect of Financial Accounting Standard (FAS) No. 123 (R), which requires us to record the share-based payment charge, are as follows: -- Non-GAAP net income was $27.8 million, an increase of $3.5 million, or 14.3%, over the year ago period. -- Non-GAAP diluted EPS, was $0.34, an increase of $0.05, or 17.2%, over the year ago period. -- MICROS's financial results were Company records for a first fiscal quarter. Tom Giannopoulos, MICROS's Chairman and CEO, stated: "We are pleased with the financial results for our first quarter. We are cognizant of the global economy and the challenges it presents to the markets we serve. With our leading market position and strong balance sheet, we are well positioned to weather the present economic conditions." 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, such as hurricanes and tsunamis; 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 30, 2008. 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) First quarter ended Sept. 30, 2008 2007 Revenue: Hardware $63,693 $64,901 Software 37,576 30,851 Service 142,800 120,730 Total revenue 244,069 216,482 Cost of sales: Hardware 43,059 39,938 Software 7,300 8,509 Service 67,766 54,793 Total cost of sales 118,125 103,240 Gross margin 125,944 113,242 Selling, general and administrative expenses 73,276 67,353 Research and development expenses 10,263 9,114 Depreciation and amortization 4,087 3,846 Stock option expense (*) 3,733 3,844 Total operating expenses 91,359 84,157 Income from operations 34,585 29,085 Non-operating income, net 3,795 3,322 Income before taxes, minority interests, and equity in net earnings of affiliates 38,380 32,407 Income tax provision 13,049 10,856 Income before minority interests and equity in net earnings of affiliates 25,331 21,551 Minority interests and equity in net earnings of affiliates (449) (247) Net income (GAAP) $24,882 $21,304 Net income per diluted common share (GAAP) $0.30 $0.25 Weighted-average number of shares outstanding - diluted 82,196 83,512 Reconciliation of GAAP Net Income and EPS, and Non-GAAP Net Income and EPS before share-based payment charge, i.e. stock option expense Net income (GAAP) $24,882 $21,304 Add back: (*) Stock option expense Selling, general and administrative expenses 3,525 3,542 Research and development expenses 208 302 Total stock option expense 3,733 3,844 Subtract: Total tax effect on stock option expense 841 841 Net income, before share-based payment charge (Non-GAAP) $27,774 $24,307 Net income per diluted common share, before share-based payment charge (Non-GAAP) $0.34 $0.29 We believe the inclusion of the above non-GAAP measure, excluding the effect of share-based payment charge, will be useful to investors because it will enhance the comparability of our results in recent periods to results in periods prior to our adoption of FAS 123(R). 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 continue to forecast excluding the effect of share-based payment charge, 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-cash share-based payment charges can have a significant impact on reported GAAP net income and diluted net income per share. -- Other companies may utilize non-cash share-based payments to a significantly greater or lesser degree in relation to overall compensation than MICROS. -- 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, June 30, 2008 2008 ASSETS Current assets: Cash and cash equivalents $325,441 $381,964 Accounts receivable, net 203,153 192,445 Inventory, net 52,795 64,575 Deferred income taxes 17,528 18,724 Prepaid expenses and other current assets 27,417 29,737 Total current assets 626,334 687,445 Investments, non-current 62,662 65,216 Property, plant and equipment, net 31,308 29,165 Deferred income taxes, non-current 8,261 7,108 Goodwill 186,895 159,722 Intangible assets, net 21,568 16,168 Purchased and internally developed software costs, net 32,045 30,846 Other assets 8,249 7,336 Total assets $977,322 $1,003,006 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bank lines of credit $987 $989 Accounts payable 41,895 46,843 Accrued expenses and other current liabilities 116,045 124,913 Income taxes payable 4,099 6,363 Deferred revenue 122,059 115,398 Total current liabilities 285,085 294,506 Income taxes payable, non-current 18,438 18,302 Deferred income taxes, non-current 3,382 2,181 Other non-current liabilities 10,183 8,103 Total liabilities 317,088 323,092 Minority interests and minority ownership put arrangement 6,702 6,898 Commitments and contingencies Shareholders' equity: Common stock 504 506 Capital in excess of par 126,347 131,517 Retained earnings 505,468 480,777 Accumulated other comprehensive income 21,213 60,216 Total shareholders' equity 653,532 673,016 Total liabilities and shareholders' equity $977,322 $1,003,006 DATASOURCE: MICROS Systems, Inc. CONTACT: Peter J. Rogers, Jr., Executive Vice President, Investor Relations, of MICROS Systems, Inc., +1-443-285-8059, Web site: http://www.micros.com/

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