(By Salman - iStockAnalyst Writer)
Bullish Stock of the Day : Micros Systems (Nasdaq: MCRS)
Micros Systems (
Nasdaq: MCRS) is the world’s leading developer of enterprise applications serving the hospitality and specialty retail industries. Micros serves table service and quick service restaurants, hotels, the leisure and entertainment industry, and specialty retail stores with complete information management solutions including software, hardware, enterprise systems integration, consulting and support.
The company's global network consists of over 4,600 employees, more than 80 wholly or majority-owned subsidiaries and branch offices in major markets and 115 distributors in 45 countries.
Late in April, the company reported quarterly earnings that beat expectations. Net income totaled $23.4 million, or 29 cents a share, compared to $25.15 million, or 30 cents a share, in the prior year quarter. Quarterly revenue dropped to $205.7 million from $237.2 million. Consensus estimate were for 28 cents a share on revenue of $222.18 million. The performance seems quite impressive as the March quarter is traditionally the weakest part of the year for company's business. The revenue was negatively impacted to the tune of about $21 million due to the stronger dollar. International markets are quite important for company's business as almost 50% of company's revenue comes from international subsidiaries.
The company has been quite resilient to the recession. Micros Systems' gross margin for the quarter rose to 54%, the highest in the last 10 years. Operating profit jumped 17.2% to $35.439 million.
Micros Systems also has been quick in adapting to changed economic reality. In real dollars, the company's operating expenses have come down significantly. It came down about $12 million from the September quarter, from $87.626 million in September to $75.612 million now, and some $7.599 million from the December quarter from the $83.211 million in December quarter to $75.612 million now. Also, the company has been efficiently managing its variable costs and Selling, General & Administrative expenses, as a percentage of revenue, for the quarter ended March 31,
2009, decreased 0.7% to 31.3%, compared to the same period last year.
The company's balance sheet remains strong. The company increased its cash position in March quarter by $50 million from $390 million in December to $440 million in March. During FY '09, Micros Systems' generated approximately $117 million from operating activities, while spending $10.4 million on property, plant and equipment, approximately $50 million for the acquisition of Fry.
