COLUMBIA, Md., Aug. 27 /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 2009 fourth quarter and fiscal year ending June 30, 2009.
FINANCIAL HIGHLIGHTS
-Revenue for the fiscal 2009 fourth quarter was $224.2 million; revenue for the 2009 fiscal year was $911.8 million.
-GAAP net income for the quarter was $24.0 million; GAAP net income for the fiscal year was $99.3 million.
-GAAP diluted earnings per share (EPS) for the quarter was $0.29; GAAP diluted EPS for the fiscal year was $1.21.
During the fourth quarter, we recorded a one-time restructuring charge of $3.8 million related to operations. We also recorded an impairment charge of $1.3 million related to our investments in auction rate securities.
- Non-GAAP financial results, excluding the effect of charges for stock options, the one-time restructuring and the investment impairment, are as follows:
- Non-GAAP net income for the quarter was $29.3 million; Non-GAAP net income for the fiscal year was $113.0 million.
- Non-GAAP diluted EPS for the quarter was $0.36; Non-GAAP diluted EPS for the fiscal year was $1.38, a record.
The financial results for the fourth quarter and fiscal year exceeded consensus expectations.
Tom Giannopoulos, MICROS's Chairman and CEO, stated, "We are very pleased with our financial results for the fiscal 2009 fourth quarter and fiscal year. Even with the difficult business conditions, we produced solid revenue with record operating profit and record earnings per share."
NEW STOCK BUYBACK APPROVED
On August 25, 2009, our Board of Directors approved the purchase of an additional two million shares of our common stock. Shares under the new plan 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 27, 2009. 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.
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
Fourth Quarter Fiscal Year
Ended Ended
June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Revenue:
Hardware $48,081 $68,581 $210,676 $265,965
Software 30,750 45,421 134,845 158,699
Service 145,346 142,562 566,326 529,520
------- ------- ------- -------
Total revenue 224,177 256,564 911,847 954,184
------- ------- ------- -------
Cost of sales:
Hardware 30,994 44,674 135,094 171,779
Software 6,281 7,581 27,244 33,252
Service 65,793 67,171 264,883 247,954
Restructuring related 681 - 681 -
--- --- --- ---
Total cost of sales 103,749 119,426 427,902 452,985
------- ------- ------- -------
Gross margin 120,428 137,138 483,945 501,199
Selling, general and
administrative expenses 60,573 76,463 263,754 290,411
Research and development
expenses 11,137 10,438 41,838 39,113
Depreciation and
amortization 4,978 4,388 17,544 15,143
Stock option expense 2,882 3,785 13,900 17,229
Restructuring charge 3,094 - 3,094 -
----- --- ----- ---
Total operating expenses 82,664 95,074 340,130 361,896
------ ------ ------- -------
Income from operations 37,764 42,064 143,815 139,303
Non-operating income (expense):
Interest income (expense),
net 1,089 3,164 7,786 14,439
Credit based impairment
charge (1,266) - (1,266) -
Other non-operating income
(expense), net (1,020) 1,368 (493) 597
------ ----- ---- ---
Total non-operating, net (1,197) 4,532 6,027 15,036
------ ----- ----- ------
Income before taxes, minority
interests, and equity in net
earnings of affiliates 36,567 46,596 149,842 154,339
Income tax provision 12,143 16,304 49,148 52,167
------ ------ ------ ------
Income before minority
interests and equity in net
earnings of affiliates 24,424 30,292 100,694 102,172
Minority interests and equity
in net earnings of affiliates (435) 454 (1,397) (888)
---- --- ------ ----
Net income (GAAP) $23,989 $30,746 $99,297 $101,284
======= ======= ======= ========
Net income per common share -
diluted $0.29 $0.37 $1.21 $1.21
===== ===== ===== =====
Weighted-average number of
shares outstanding -diluted 81,537 83,346 81,461 83,346
====== ====== ====== ======
Reconciliation of GAAP Net Income and EPS to
Non-GAAP Net Income and EPS
Net Income $23,989 $30,746 $99,297 $101,284
Add back:
Stock option expense
Selling, general and
administrative expenses 2,744 3,568 13,108 16,213
Research and development
expenses 138 217 792 1,016
--- --- --- -----
2,882 3,785 13,900 17,229
----- ----- ------ ------
Restructuring related cost of
sales 681 - 681 -
Restructuring charge included
in operating expenses 3,094 - 3,094 -
Credit based impairment
charge 1,266 - 1,266 -
----- ----- ------ ------
Total Add back 7,923 3,785 18,941 17,229
----- ----- ------ ------
Subtract: Total tax effect on:
Stock option expense 1,455 769 4,100 4,083
Restructuring charge and
related cost of sales 1,186 - 1,186 -
----- --- ----- ---
2,641 769 5,286 4,083
----- --- ----- -----
Non-GAAP Net Income $29,271 $33,762 $112,952 $114,430
======= ======= ======== ========
Non-GAAP Net Income per
Diluted Common Share $0.36 $0.40 $1.38 $1.37
===== ===== ===== =====
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, June 30,
2009 2008
-------- --------
ASSETS
Current assets:
Cash and cash equivalents and short-term
investments $438,936 $381,964
Accounts receivable, net 157,479 192,445
Inventory, net 39,783 64,575
Deferred income taxes 20,283 18,724
Prepaid expenses and other current assets 27,238 29,737
------ ------
Total current assets 683,719 687,445
Long-term investments 57,823 65,216
Property, plant and equipment, net 30,520 29,165
Deferred income taxes, non-current 11,483 7,108
Goodwill 190,739 159,722
Intangible assets, net 17,709 16,168
Purchased and internally developed software
costs, net 25,749 30,846
Other assets 6,344 7,336
----- -----
Total assets $1,024,086 $1,003,006
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank lines of credit $1,090 $989
Accounts payable 36,647 46,843
Accrued expenses and other current
liabilities 104,821 124,913
Income taxes payable 7,999 6,363
Deferred revenue 112,146 115,398
------- -------
Total current liabilities 262,703 294,506
Income taxes payable, non-current 19,611 18,302
Deferred income taxes, non-current 1,752 2,181
Other non-current liabilities 9,047 8,103
----- -----
Total liabilities 293,113 323,092
Minority interests and minority ownership put
arrangement 7,526 6,898
Commitments and contingencies
Shareholders' equity:
Common stock 502 506
Capital in excess of par 127,146 131,517
Retained earnings 579,331 480,777
Accumulated other comprehensive income 16,468 60,216
------ ------
Total shareholders' equity 723,447 673,016
------- -------
Total liabilities and shareholders' equity $1,024,086 $1,003,006
========== ==========
SOURCE MICROS Systems, Inc.
