MICROS Beats in 1Q, Sales Surge - Analyst Blog
October 30 2012 - 6:40AM
Zacks
MICROS Systems
Inc.’s (MCRS) non -GAAP diluted earnings per share for the
first quarter of fiscal 2013 (ended September 30, 2012) came in at
57 cents compared with 48 cents in the prior-year quarter and 68
cents in the previous quarter. This surpassed the Zacks Consensus
Estimate of 54 cents.
On a GAAP basis, earnings came in
at 50 cents per share versus 45 cents in the year-ago quarter and
59 cents in the prior quarter.
Revenues
Revenues were $299.9 million, up
16.9% year over year but down 0.9% sequentially. The annual rise in
the revenue was driven by the company’s organic growth as well as
its recent acquisition of Torex Retail.
On a segment basis, Service
revenues came in at $205.3 million, rising 17.4% from $174.9
million in the previous year quarter. Hardware revenues came in at
$63.8 million, increasing 31.7% from the year-ago quarter. Software
revenues came in at $30.8 million, down 7.5% year over year owing
to the seasonal condition.
Income and
Expenses
Gross margin came in at 51.1%
compared with 56.3% in the year-ago quarter and 54.7% in the last
quarter. The year-over-year decline was due to higher cost of sales
in the quarter as well as impacts from weak operating conditions in
the U.S. and Europe.
In the quarter, selling, general
and administrative expenses came in at $72.6 million, decreased
0.1% from the year-earlier quarter. Research and development
expenses amounted to $16.4 million, up 48.4% annually.
Operating margin came in at 17.7%
versus 20.8% in the previous year period and 23.4% in the previous
quarter.
Balance Sheet
MICROS ended the quarter with cash
and cash equivalents and short-term investments of $581.2 million
versus $582.0 million at the end of the previous quarter. Net
accounts receivable were $244 million at the end of the quarter
compared with $235.4 million at the end of the prior quarter. As of
September 30, 2012, inventory was $48.9 million versus $44.3
million at the end of the previous quarter.
Share
Repurchase
The company repurchased nearly
2,000 shares at an average price of $47.63 during the first quarter
of fiscal 2013.
Guidance
The company has reiterated its
guidance for fiscal 2013. The company continues to expect that
revenue will be within the range of $1.3 to $1.325 billion. MICROS
project that non-GAAP earnings per share will be within $2.40 to
$2.44.
The company faces tough competition
from NCR Corp. (NCR), Panasonic
Corporation (PC) and PAR Technology
Corporation (PAR), who are continuously strengthening
their potentials through expanding their businesses worldwide.
Our Take
The company currently retains a
Zacks #2 Rank, which translates into a short-term ‘Buy’ rating. We
also maintain a long-term ‘Neutral’ recommendation on the
stock.
MICROS SYS (MCRS): Free Stock Analysis Report
NCR CORP-NEW (NCR): Free Stock Analysis Report
(PAR): ETF Research Reports
PANASONIC CORP (PC): Free Stock Analysis Report
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