COLUMBIA, Md., Aug. 26 /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 2010 fourth quarter and fiscal year ending
June 30, 2010.
FINANCIAL HIGHLIGHTS
- Revenue for the fiscal 2010 fourth quarter was $248.2 million, an increase of $25.4 million, or 11.4% over the same period last
year.
- Revenue for the fiscal year was $914.3
million, an increase of $6.6
million, or 0.7%, over the same period last year.
- GAAP net income for the quarter was $33.9 million, an increase of $11.0 million, or 48.2% over the same period last
year.
- GAAP net income for the fiscal year was $114.4 million, an increase of $18.1 million, or 18.8%, over the same period
last year.
- GAAP diluted earnings per share (EPS) for the quarter was
$0.42, an increase of $0.14, or 50%, over the same period last
year.
- GAAP diluted earnings per share for the fiscal year was
$1.41, an increase of $0.24, or 20.5%, over the same period last
year.
During the fourth quarter, we recorded an impairment charge of
$4.4 million related to our
investments in auction rate securities.
- Non-GAAP financial results, excluding the effect of charges for
stock options and the investment impairment, are as follows:
- Non-GAAP net income for the quarter was $39.8 million, an increase of $11.6 million, or 41.3%, over the same period
last year.
- Non-GAAP net income for the fiscal year was $127.2 million, an increase of $17.3 million, or 15.7%, over the same period
last year.
- Non-GAAP diluted EPS for the quarter was $0.49, an increase of $0.15, or 44.1%, over the same period last
year.
- Non-GAAP diluted EPS for the fiscal year $1.57, an increase of $0.23, or 17.2%, over the same period last
year.
The financial results for the fourth fiscal quarter exceeded
consensus expectations. The operating income, net income and EPS
for the quarter and fiscal year were records for MICROS.
Tom Giannopoulos, MICROS's
Chairman and CEO, stated, "We are very pleased with our excellent
fourth quarter results, achieving record operating income, net
income and EPS for both the quarter and our fiscal year. The
strong finish to our fiscal year bodes well for the future."
MICROS's financial guidance for fiscal 2011 is for revenue
between $1,000 million and $1,005
million and net income between $140
million and $142 million.
NEW STOCK BUYBACK APPROVED
On August 24, 2010, our Board of
Directors approved the purchase of an additional two million shares
of our common stock. The new plan will take effect once the
current two million share buyback plan of August 2009 is completed. Under the new plan,
which is the same as the current 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 August 26, 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 at 443-285-8059 or at MICROS's website at
http://www.micros.com.
Contact:
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Peter J. Rogers,
Jr.
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Executive Vice President,
Investor Relations
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443-285-8059
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progers@micros.com
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MICROS SYSTEMS,
INC.
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CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
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(Unaudited - in thousands,
except per share amounts)
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Three Months
Ended
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Fiscal Year Ended
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June 30,
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June 30,
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2010
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2009
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2010
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2009
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Revenue:
|
|
|
|
|
|
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Hardware
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$52,027
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$47,959
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$188,333
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$209,834
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Software
|
34,072
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|
30,119
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118,788
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|
132,912
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Service
|
162,118
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144,762
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607,198
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564,979
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Total revenue
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248,217
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222,840
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914,319
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907,725
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Cost of sales:
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|
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Hardware
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31,074
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30,891
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119,489
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134,352
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Software
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7,197
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5,804
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25,731
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25,570
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Service
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73,548
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65,792
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267,586
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264,881
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Stock option
expense
|
32
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|
0
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32
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0
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Restructuring
related
|
0
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|
681
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0
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|
681
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Total cost of sales
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111,851
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|
103,168
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412,838
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|
425,484
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|
|
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|
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Gross margin
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136,366
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119,672
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501,481
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482,241
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Selling, general and
administrative expenses
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66,755
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60,936
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262,146
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265,029
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Research and development
expenses
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10,947
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|
11,137
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|
41,718
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41,838
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Depreciation and
amortization
|
4,476
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|
4,978
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|
17,311
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17,545
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Stock option
expense
|
2,529
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|
2,882
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|
12,333
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13,900
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Restructuring
related
|
0
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3,094
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|
0
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3,094
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Total operating
expenses
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84,707
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83,027
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333,508
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341,406
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Income from
operations
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51,659
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36,645
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167,973
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140,835
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Non-operating income
(expense):
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Interest income
(expense), net
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1,094
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1,089
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3,817
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7,786
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Credit based impairment
charge
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(4,396)
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(1,266)
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(4,783)
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(1,266)
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Other non-operating
(expense) income, net
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1,028
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(1,020)
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1,118
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(493)
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Total non-operating income,
net
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(2,274)
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(1,197)
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152
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6,027
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Income before taxes
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49,385
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35,448
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168,125
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146,862
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Income tax provision
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15,152
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12,149
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52,745
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49,173
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Net income
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34,233
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23,299
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115,380
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97,689
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Less: Net income
attributable to noncontrolling interest
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(353)
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(435)
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(1,027)
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(1,397)
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Net Income attributable to
MICROS Systems, Inc. (GAAP)
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$33,880
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$22,864
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$114,353
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$ 96,292
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Net Income per Diluted Common
Share attributable to MICROS Systems, Inc.
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$ 0.42
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$ 0.28
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$
1.41
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$
1.17
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Weighted-average number of
shares outstanding - diluted
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81,871
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81,537
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81,448
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81,461
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Reconciliation of GAAP Net
Income and EPS attributable to MICROS Systems, Inc. to Non-GAAP Net
Income and EPS attributable to MICROS Systems, Inc.
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Net Income attributable to
MICROS Systems, Inc.
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$33,880
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$22,864
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$114,353
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$ 96,292
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Add back:
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Stock option
expense
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|
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Selling, general and administrative expenses
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2,417
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2,744
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11,822
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13,108
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Research and development expenses
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112
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|
138
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|
511
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|
792
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Cost
of sales
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32
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-
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32
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-
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2,561
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2,882
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12,365
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13,900
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Restructuring charge
included in operating expenses
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-
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3,094
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-
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3,094
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Restructuring related cost
of sales
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-
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|
681
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-
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681
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Credit based impairment
charge
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4,396
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1,266
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4,783
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1,266
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Total Add back
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6,957
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7,923
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17,148
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18,941
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Subtract tax effect
on:
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Stock option
expense
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1,061
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1,455
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4,283
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4,100
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Restructuring related cost
of sales
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-
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1,186
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-
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1,186
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1,061
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2,641
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4,283
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5,286
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Non-GAAP Net Income attributable
to MICROS Systems, Inc.
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$39,776
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$28,146
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$127,218
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$109,947
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Non-GAAP Net Income per Diluted
Common Share attributable to MICROS Systems, Inc.
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$ 0.49
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$ 0.34
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$
1.57
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$
1.34
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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.
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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:
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- The exclusion of non-GAAP
items can have a significant impact on reported GAAP net income and
diluted net income per share.
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- 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.
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MICROS SYSTEMS,
INC.
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CONDENSED CONSOLIDATED BALANCE
SHEETS
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(Unaudited - in
thousands)
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June 30,
2010
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June 30,
2009
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ASSETS
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Current assets:
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Cash and cash
equivalents and short-term investments
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$ 545,298
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$ 438,936
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Accounts
receivable, net
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153,066
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155,212
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Inventory,
net
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35,103
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39,783
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Deferred income
taxes
|
19,624
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|
19,870
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Prepaid expenses
and other current assets
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27,004
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27,238
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Total current assets
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780,095
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681,039
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Long-term investments
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59,884
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57,823
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Property, plant and equipment,
net
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27,349
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|
30,520
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Deferred income taxes,
non-current
|
13,556
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|
11,456
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Goodwill
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213,825
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|
190,739
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Intangible assets,
net
|
19,590
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|
17,709
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Purchased and internally
developed software costs, net
|
17,468
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|
25,749
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Other assets
|
6,524
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|
6,344
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Total Assets
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$1,138,291
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$1,021,379
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LIABILITIES AND
EQUITY
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Current liabilities:
|
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Bank lines of
credit
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$
1,442
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$
1,090
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Accounts
payable
|
44,783
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|
38,445
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Accrued expenses
and other current liabilities
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135,469
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|
104,821
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Income taxes
payable
|
5,856
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|
7,944
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Deferred
revenue
|
124,498
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|
112,146
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Total current liabilities
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312,048
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|
264,446
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Income taxes payable,
non-current
|
22,737
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|
19,611
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Deferred income taxes,
non-current
|
2,590
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|
1,752
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Other non-current
liabilities
|
11,304
|
|
10,539
|
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Total liabilities
|
348,679
|
|
296,348
|
|
|
|
|
|
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Commitments and
contingencies
|
|
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Equity:
|
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MICROS Systems, Inc.
shareholders’ equity:
|
|
|
|
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Common
stock
|
500
|
|
502
|
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Capital in excess
of par
|
118,963
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|
127,146
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Retained
earnings
|
689,750
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|
575,095
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Accumulated other
comprehensive income
|
(25,833)
|
|
16,254
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Total MICROS Systems, Inc. shareholders’ equity
|
783,380
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|
718,997
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Noncontrolling
interest
|
6,232
|
|
6,034
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Total Equity
|
789,612
|
|
725,031
|
|
|
|
|
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Total Liabilities and
Equity
|
$1,138,291
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$1,021,379
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SOURCE MICROS Systems, Inc.
Copyright . 26 PR Newswire