For the six-month period ending December 31, 2002, MICROS's revenue was $182.1 million, an increase of $7.6 million, or 4.4%, over the same period last year. Net income for the six-month period was $7.6 million, an increase of $4.3 million, or 126.7%, over the year ago period. Earnings per share, on a diluted basis, were $0.43, an increase of $0.24 per share, or 126.3%, over the year ago earnings of $0.19 per share.
In the first quarter of fiscal 2003, MICROS adopted Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets." Under this Statement, the Company is not recording goodwill amortization expense for fiscal 2003. For comparison purposes, the effect of goodwill amortization for the fiscal 2002 second quarter was $0.08 per diluted share and $0.14 per diluted share on a six-month basis.
Tom Giannopoulos, MICROS's Chairman and CEO stated: "We are pleased with the results for the quarter as revenue and net income exceeded our expectations. Notwithstanding the global issues existing today, we are on-track with our fiscal year projections and we are encouraged by the increased demand for our products and services."
MICROS's management guidance for the fiscal 2003 third quarter ending March 31, 2003 is for revenue between $95.0 million and $100.0 million and net income between $5.0 million and $6.0 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
(Unaudited -- in thousands, except per share amounts)
Second Quarter Ended Six Months Ended
December 31, December 31,
2002 2001 2002 2001
Revenue:
Hardware and
software $51,011 $47,497 $94,171 $90,195
Service 44,537 43,402 87,888 84,215
Total revenue 95,548 90,899 182,059 174,410
Cost of sales:
Hardware and
software 27,695 26,409 52,971 50,755
Service 20,278 21,416 40,100 40,513
Total cost of sales 47,973 47,825 93,071 91,268
Gross margin 47,575 43,074 88,988 83,142
Selling, general and
administrative
expenses 32,682 30,350 62,126 59,030
Research and
development expenses 4,248 4,735 9,135 9,561
Depreciation and
amortization 2,129 4,076 4,175 7,831
Total operating
expenses 39,059 39,161 75,436 76,422
Income from operations 8,516 3,913 13,552 6,720
Non-operating income
(expense), net 190 276 (434) (863)
Income before taxes,
minority interests,
and equity in net
earnings of
affiliates 8,706 4,189 13,118 5,857
Income tax provision 3,570 1,559 5,247 2,226
Income before minority
interests and equity
in net earnings
of affiliates 5,136 2,630 7,871 3,631
Minority interests
and equity in net
earnings of
affiliates (205) (145) (245) (267)
Net income $4,931 $2,485 $7,626 $3,364
Net income per
common share:
Basic $0.28 $0.14 $0.44 $0.19
Diluted $0.28 $0.14 $0.43 $0.19
Weighted-average number
of shares outstanding:
Basic 17,398 17,502 17,436 17,497
Diluted 17,612 17,757 17,707 17,741
MICROS SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited -- in thousands)
December 31, June 30,
2002 2002
ASSETS
Current assets:
Cash and cash equivalents $55,684 $66,638
Accounts receivable, net 90,278 86,918
Inventories, net 35,750 31,211
Deferred income taxes 7,081 7,008
Prepaid expenses and other current assets 15,207 12,756
Total current assets 204,000 204,531
Property, plant and equipment, net 20,514 21,467
Deferred income taxes, non-current 20,107 20,707
Goodwill and intangible assets, net 31,144 32,055
Purchased and internally developed software
costs, net 31,568 30,303
Other assets 3,411 3,767
Total assets $310,744 $312,830
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank lines of credit $8,350 $18,699
Current portion of capital lease obligations 132 147
Accounts payable 25,552 25,955
Accrued expenses and other current liabilities 37,395 34,554
Income taxes payable 2,986 7,303
Deferred income taxes 810 547
Deferred service revenue 35,853 33,841
Total current liabilities 111,078 121,046
Capital lease obligations, net of current
portion 295 279
Deferred income taxes, non-current 9,940 9,933
Other non-current liabilities 1,342 1,232
Commitments and contingencies:
Minority interests 2,450 1,978
Shareholders' equity:
Common stock 434 438
Capital in excess of par 53,509 56,867
Retained earnings 138,225 130,599
Accumulated other comprehensive loss (6,529) (9,542)
Total shareholders' equity 185,639 178,362
Total liabilities and shareholders' equity $310,744 $312,830
