MCRS (MM)

MICROS Reports Fiscal 2004 Year Results: Record Quarterly and Fiscal Year Revenue, Net Income and EPS; Revenue, Net Income & EPS Exceed Expectations COLUMBIA, Md., Aug. 26 /PRNewswire-FirstCall/ -- MICROS Systems, Inc. (NASDAQ:MCRS), a leading supplier of information systems to the hospitality and specialty retail industries, today announced the results for its fiscal 2004 fourth quarter and fiscal year ended June 30, 2004. Revenue for the quarter was $142.8 million, an increase of $20.6 million, or 16.9%, over the same period last year. Net income for the quarter was $12.4 million, an increase of $3.7 million, or 41.6%, over the year ago fourth quarter. Earnings per share, on a diluted basis, were $0.64 per share, an increase of $0.16 per share, or 33.3%, over the year ago figure of $0.48. The quarterly revenue, net income and earnings per share are Company records. For the fiscal year ended June 30, 2004, MICROS's revenue was $487.4 million, an increase of $81.6 million, or 20.1%, over the same period last year. Net income for the fiscal year was $33.3 million, an increase of $11.5 million, or 52.8%, over last year. Earnings per share, on a diluted basis, were $1.73, an increase of $0.51 per share, or 41.8%, over the year ago figure of $1.22. The fiscal year revenue, net income and earnings per share are Company records. The revenue, net income and earnings per share results for the fourth quarter and fiscal year exceeded consensus expectations. Tom Giannopoulos, MICROS's Chairman and CEO stated: "We are extremely pleased with our quarterly and fiscal year results for this record year. We had many accomplishments the past year including the successful execution of the Datavantage acquisition, continued improvements in our financial metrics, and numerous major customer wins across all three segment: hotels, restaurants, and specialty retail. I am extremely proud of our employees, as they have made this past year a great success with their focus, hard work and dedication, and I am also very grateful to our customers." MICROS's management guidance for the fiscal 2005 first quarter ending September 30, 2004 is for revenue between $115.0 million and $119.0 million and net income between $5.9 million and $6.9 million. Revenue guidance for the fiscal 2005 year ending June 30, 2005 has been increased above consensus estimates with a range from $520.0 million to $530.0 million. Guidance for net income for fiscal 2005 is between $38.0 million and $41.0 million. 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. Some of those uncertainties are: product demand and market acceptance; adverse economic factors; impact of competitive products and pricing on margins; product development delays and technological difficulties; and aggressively controlling expenses. Other risks are indicated in the MICROS Form 10-K and other filings with the Securities and Exchange Commission. MICROS assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. MICROS SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) Fourth Quarter Ended Twelve Months Ended June 30, June 30, 2004 2003 2004 2003 Revenue: Hardware $47,583 $41,671 $151,640 $137,013 Software 24,213 22,597 82,486 71,251 Service 71,009 57,900 253,317 197,593 Total revenue 142,805 122,168 487,443 405,857 Cost of sales: Hardware 33,345 29,571 105,507 98,037 Software 2,060 4,552 16,372 17,207 Service 33,624 25,852 116,455 92,054 Total cost of sales 69,029 59,975 238,334 207,298 Gross margin 73,776 62,193 249,109 198,559 Selling, general and administrative expenses 41,170 38,848 155,235 132,601 Research and development expenses 7,252 5,369 27,209 18,748 Depreciation and amortization 2,753 2,718 9,831 8,888 Total operating expenses 51,175 46,935 192,275 160,237 Income from operations 22,601 15,258 56,834 38,322 Non-operating (expense) income, net (869) (254) 704 (1,127) Income before taxes, minority interests, and equity in net earnings of affiliates 21,732 15,004 57,538 37,195 Income tax provision 9,091 6,201 23,592 15,078 Income before minority interests and equity in net earnings of affiliates 12,641 8,803 33,946 22,117 Minority interests and equity in net earnings of affiliates (196) (17) (667) (335) Net income $12,445 $8,786 $33,279 $21,782 Net income per common share: Basic $0.68 $0.49 $1.83 $1.24 Diluted $0.64 $0.48 $1.73 $1.22 Weighted-average number of shares outstanding: Basic 18,383 17,786 18,227 17,502 Diluted 19,341 18,401 19,209 17,838 MICROS SYSTEMS, INC. CONSOLIDATED BALANCE SHEET (In thousands) June 30, June 30, 2004 2003 ASSETS Current assets: Cash and cash equivalents $91,451 $45,682 Accounts receivable, net 101,367 98,700 Inventories, net 36,095 31,864 Deferred income taxes 9,396 7,885 Prepaid expenses and other current assets 16,242 17,860 Total current assets 254,551 201,991 Property, plant and equipment, net 19,550 20,179 Deferred income taxes, non-current 24,573 32,003 Goodwill and intangible assets, net 73,090 74,270 Purchased and internally developed 41,112 38,089 software costs, net Other investments 415 10 Other assets 2,785 3,473 Total assets $416,076 $370,015 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bank lines of credit $2,481 $10,185 Current portion of long term debt 0 363 Current portion of capital lease obligations 139 106 Accounts payable 29,681 24,177 Accrued expenses and other current liabilities 58,693 44,240 Income taxes payable 1,541 10,102 Deferred income taxes 512 501 Deferred service revenue 43,019 38,538 Total current liabilities 136,066 128,212 Capital lease obligations, net of current portion 166 198 Deferred income taxes, non-current 12,728 11,495 Other non-current liabilities 1,401 6,510 Commitments and contingencies Minority interests 2,742 2,372 Shareholders' equity: Common stock 458 450 Capital in excess of par 71,525 69,644 Retained earnings 185,658 152,381 Accumulated other comprehensive income (loss) 5,332 (1,247) Total shareholders' equity 262,973 221,228 Total liabilities and shareholders' equity $416,076 $370,015 DATASOURCE: MICROS Systems, Inc. CONTACT: Peter J. Rogers, Jr., Vice President, Investor Relations, of MICROS Systems, Inc., +1-443-285-8059, Web site: http://www.micros.com/

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