COLUMBIA, Md., Aug. 21, 2014 /PRNewswire/ -- MICROS Systems,
Inc. (Nasdaq: MCRS), a leading supplier of information systems to
the food & beverage, hotel and retail industries, today
announced the results for its fiscal 2014 fourth quarter and year
ending June 30, 2014.
FINANCIAL
HIGHLIGHTS
- Revenue for the quarter was $396.1
million, an increase of $67.5
million, or 20.6%, versus the year ago period.
- Revenue for the fiscal year was $1.405
billion, an increase of $137.3
million, or 10.8%, versus the year ago period.
- GAAP net income for the quarter was $56.0 million, an increase of $14.0 million, or 33.4%, versus the year ago
period.
- GAAP net income for the fiscal year was $182.0 million, an increase of $10.6 million, or 6.2%, versus the year ago
period.
- GAAP diluted earnings per share (EPS) for the quarter was
$0.74 per share, an increase of
$0.21, or 39.6%, versus the year ago
period.
- GAAP diluted EPS for the fiscal year was $2.37, an increase of $0.25, or 11.8%, versus the year ago period.
- Non-GAAP financial results, excluding the effect of charges for
stock options, Oracle transaction related expenses, a litigation
charge and accrued interest, amortization of Torex intangibles,
restructuring of Torex, and gain on the sale and settlement of
auction rate securities, are as follows:
- Non-GAAP net income for the quarter was $63.5 million, an increase of $14.6 million, or 29.9%, versus the year ago
period.
- Non-GAAP net income for the fiscal year was $205.3 million, an increase of $13.4 million, or 7.0%, versus the year ago
period.
- Non-GAAP diluted EPS for the quarter was $0.84, an increase of $0.22, or 35.5%, versus the year ago period.
- Non-GAAP diluted EPS for the fiscal year was $2.67, an increase of $0.29, or 12.2%, versus the year ago period.
MICROS's quarterly and fiscal year revenue, net income
(GAAP and Non-GAAP) and EPS (GAAP and Non-GAAP) were Company
records.
MICROS will not be hosting a conference call in conjunction with
these results. For more information, or to access the
financial results, please visit
www.micros.com/InvestorRelations/
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.
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/InvestorRelations/
Contact: Peter J. Rogers,
Jr.
Executive Vice President, Investor
Relations
443-285-8059
progers@micros.com
|
MICROS SYSTEMS,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited - in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
June
30,
|
|
June
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Hardware
|
$ 103,271
|
|
$
74,125
|
|
$
319,520
|
|
$
269,651
|
|
Software
|
48,155
|
|
36,688
|
|
166,516
|
|
143,034
|
|
Service
|
244,719
|
|
217,796
|
|
919,361
|
|
855,400
|
|
Total
revenue
|
396,145
|
|
328,609
|
|
1,405,397
|
|
1,268,085
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Hardware
|
64,957
|
|
47,382
|
|
204,351
|
|
175,248
|
|
Software
|
5,233
|
|
5,743
|
|
24,752
|
|
22,178
|
|
Service
|
115,930
|
|
102,365
|
|
439,816
|
|
406,429
|
|
Stock option
expense
|
108
|
|
94
|
|
374
|
|
338
|
|
Total cost of
sales
|
186,228
|
|
155,584
|
|
669,293
|
|
604,193
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
209,917
|
|
173,025
|
|
736,104
|
|
663,892
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
96,582
|
|
86,182
|
|
347,411
|
|
317,035
|
|
Research and
development expenses
|
20,712
|
|
19,101
|
|
79,997
|
|
70,962
|
|
Depreciation and
amortization
|
5,026
|
|
4,439
|
|
18,685
|
|
16,770
|
|
Stock option
expense
|
5,554
|
|
4,742
|
|
21,683
|
|
20,764
|
|
Oracle transaction
related expenses
|
2,050
|
|
-
|
|
2,050
|
|
-
|
|
Torex amortization
expense
|
809
|
|
1,386
|
|
3,401
|
|
5,803
|
|
Torex restructuring
charge
|
1,251
|
|
3,095
|
|
1,467
|
|
5,548
|
|
Litigation
charge
|
0
|
|
0
|
|
2,800
|
|
0
|
|
Total operating
expenses
|
131,984
|
|
118,945
|
|
477,494
|
|
436,882
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
77,933
|
|
54,080
|
|
258,610
|
|
227,010
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
Interest income,
net
|
957
|
|
1,034
|
|
3,501
|
|
4,258
|
|
Interest expense -
litigation charge
|
-
|
|
-
|
|
(900)
|
|
0
|
|
Gain on
settlement/sale - auction rate securities
|
0
|
|
0
|
|
338
|
|
3,494
|
|
Other non-operating
income (expense), net
|
373
|
|
(637)
|
|
(173)
|
|
(957)
|
|
Total non-operating
income , net
|
1,330
|
|
397
|
|
2,766
|
|
6,795
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
79,263
|
|
54,477
|
|
261,376
|
|
233,805
|
|
Income tax
provision
|
23,116
|
|
12,332
|
|
79,197
|
|
61,958
|
|
Net income
|
56,147
|
|
42,145
|
|
182,179
|
|
171,847
|
|
Less: Net
income attributable to noncontrolling interest
|
(113)
|
|
(140)
|
|
(165)
|
|
(429)
|
|
|
|
|
|
|
|
|
|
|
Net Income
attributable to MICROS Systems, Inc. (GAAP)
|
$ 56,034
|
|
$
42,005
|
|
$
182,014
|
|
$
171,418
|
|
|
|
|
|
|
|
|
|
|
Net Income per
diluted common share attributable to
MICROS Systems, Inc.
|
$
0.74
|
|
$
0.53
|
|
$
2.37
|
|
$
2.12
|
|
Weighted-average
number of shares outstanding - diluted
|
75,986
|
|
79,192
|
|
76,803
|
|
80,772
|
|
|
|
|
|
|
|
|
|
|
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.
|
$ 56,034
|
|
$
42,005
|
|
$
182,014
|
|
$
171,418
|
|
Add
back:
|
|
|
|
|
|
|
|
|
Stock option
expense
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
5,095
|
|
4,358
|
|
19,652
|
|
19,124
|
|
Research and development expenses
|
459
|
|
384
|
|
2,031
|
|
1,640
|
|
Cost of sales
|
108
|
|
94
|
|
374
|
|
338
|
|
|
5,662
|
|
4,836
|
|
22,057
|
|
21,102
|
|
Oracle transaction
related expenses
|
2,050
|
|
-
|
|
2,050
|
|
-
|
|
Litigation charge,
including accrued interest expense
|
-
|
|
-
|
|
3,700
|
|
0
|
|
Torex amortization
expense
|
809
|
|
1,386
|
|
3,401
|
|
5,803
|
|
Torex restructuring
charge
|
1,251
|
|
3,095
|
|
1,467
|
|
5,548
|
|
Gain on
settlement/sale - auction rate securities
|
0
|
|
0
|
|
(338)
|
|
(3,494)
|
|
Total add
back
|
9,772
|
|
9,317
|
|
32,337
|
|
28,959
|
|
Subtract tax
effect on:
|
|
|
|
|
|
|
|
|
Oracle transaction
related expenses
|
266
|
|
-
|
|
266
|
|
-
|
|
Stock option
expense
|
1,697
|
|
1,495
|
|
6,912
|
|
6,721
|
|
Litigation charge,
including accrued interest expense
|
-
|
|
-
|
|
1,410
|
|
0
|
|
Torex amortization
expense
|
23
|
|
47
|
|
90
|
|
224
|
|
Torex restructuring
charge
|
297
|
|
871
|
|
347
|
|
1,512
|
|
Non-GAAP Net Income
attributable to MICROS Systems, Inc.
|
$ 63,523
|
|
$
48,909
|
|
$
205,326
|
|
$
191,920
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
per Diluted Common Share attributable to MICROS Systems,
Inc.
|
$
0.84
|
|
$
0.62
|
|
$
2.67
|
|
$
2.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
June 30,
2014
|
|
June 30,
2013
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
and short-term investments
|
|
$
699,808
|
|
$
634,069
|
|
Accounts receivable,
net
|
|
287,616
|
|
228,455
|
|
Inventory
|
|
57,583
|
|
49,273
|
|
Income taxes receivable
|
|
1,619
|
|
12,771
|
|
Deferred income
taxes
|
|
13,715
|
|
15,022
|
|
Prepaid expenses and other
current assets
|
|
46,129
|
|
44,648
|
|
Total current assets
|
|
1,106,470
|
|
984,238
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
57,966
|
|
44,127
|
|
Deferred income
taxes, non-current
|
|
44,661
|
|
50,186
|
|
Goodwill
|
|
458,820
|
|
432,950
|
|
Intangible assets,
net
|
|
35,140
|
|
37,754
|
|
Purchased and
internally developed software costs, net
|
|
40,669
|
|
32,543
|
|
Other
assets
|
|
8,918
|
|
7,240
|
|
Total
Assets
|
|
$ 1,752,644
|
|
$ 1,589,038
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank lines of
credit
|
|
$
-
|
|
$
1,757
|
|
Accounts payable
|
|
78,231
|
|
73,099
|
|
Accrued expenses and other
current liabilities
|
|
180,973
|
|
155,491
|
|
Income taxes
payable
|
|
8,198
|
|
11,002
|
|
Deferred revenue
|
|
193,897
|
|
177,236
|
|
Total current liabilities
|
|
461,299
|
|
418,585
|
|
|
|
|
|
|
Income taxes payable,
non-current
|
|
45,429
|
|
35,019
|
|
Deferred income
taxes, non-current
|
|
543
|
|
1,157
|
|
Other non-current
liabilities
|
|
15,915
|
|
16,007
|
|
Total liabilities
|
|
523,186
|
|
470,768
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
MICROS
Systems, Inc. stockholders' equity:
|
|
|
|
|
|
Common stock
|
|
1,871
|
|
1,918
|
|
Retained earnings
|
|
1,203,030
|
|
1,136,763
|
|
Accumulated other
comprehensive income (loss)
|
|
21,298
|
|
(23,625)
|
|
Total MICROS Systems, Inc. stockholders' equity
|
|
1,226,199
|
|
1,115,056
|
|
Noncontrolling
interest
|
|
3,259
|
|
3,214
|
|
Total
Equity
|
|
1,229,458
|
|
1,118,270
|
|
|
|
|
|
|
Total Liabilities and
Equity
|
|
$ 1,752,644
|
|
$ 1,589,038
|
|
|
|
|
|
|
MICROS SYSTEMS,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited - in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Ended
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
182,179
|
|
$
171,847
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
22,086
|
|
22,573
|
|
Share-based compensation
|
22,057
|
|
21,102
|
|
Amortization of capitalized software
|
6,483
|
|
5,208
|
|
Provision for losses on accounts receivable
|
1,540
|
|
3,563
|
|
Litigation reserve, including interest expense
|
-
|
|
-
|
|
Gain on sales of auction rate securities
|
-
|
|
(4,094)
|
|
Other-than-temporary impairment losses on investments,
net
|
-
|
|
600
|
|
Provision for (benefit from) deferred income taxes
|
7,310
|
|
(2,702)
|
|
Net (gain) loss on disposal of property, plant and
equipment
|
28
|
|
-
|
|
Other
|
106
|
|
-
|
|
Changes in operating assets and liabilities (net of impact of
acquisitions):
|
|
|
|
|
(Increase)
decrease in accounts receivable
|
(53,237)
|
|
2,430
|
|
Increase
in inventory
|
(6,982)
|
|
(5,302)
|
|
Decrease
(increase) in prepaid expenses and other assets
|
1,191
|
|
(7,833)
|
|
Increase
in accounts payable
|
3,198
|
|
3,163
|
|
Increase
(decrease) in accrued expenses and other current
liabilities
|
24,061
|
|
(13,682)
|
|
Increase
(decrease) in income taxes assets and liabilities
|
17,951
|
|
(2,587)
|
|
Increase
in deferred revenue
|
11,490
|
|
9,239
|
|
Net cash flows
provided by operating activities
|
239,461
|
|
203,525
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Proceeds from
maturities of investments
|
187,636
|
|
56,620
|
|
Proceeds from sales
of auction rate securities
|
-
|
|
42,119
|
|
Purchases of
investments
|
(110,984)
|
|
(186,371)
|
|
Purchases of
property, plant and equipment
|
(31,627)
|
|
(23,282)
|
|
Internally developed
and purchased software costs
|
(12,448)
|
|
(4,290)
|
|
Other
|
|
(1,415)
|
|
153
|
|
Net cash flows
provided by (used in) investing activities
|
31,162
|
|
(115,051)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Repurchases of common
stock
|
(215,721)
|
|
(176,603)
|
|
Proceeds from stock
option exercises
|
74,026
|
|
9,056
|
|
Proceeds from advance
on line of credit
|
539
|
|
4,014
|
|
Realized tax benefits
from stock option exercises
|
3,763
|
|
3,323
|
|
Principal payments on
line of credit
|
(1,893)
|
|
(2,061)
|
|
Cash paid for
acquisition of non-controlling interest
|
-
|
|
(846)
|
|
Other
|
|
(189)
|
|
9
|
|
Net cash flows used
in financing activities
|
(139,475)
|
|
(163,108)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
9,200
|
|
(2,129)
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
140,348
|
|
(76,763)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
486,023
|
|
562,786
|
|
Cash and cash
equivalents at end of year
|
$
626,371
|
|
$
486,023
|
SOURCE MICROS Systems, Inc.