COLUMBIA, Md. -- MICROS Systems, Inc. (Nasdaq: MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2008 third quarter ended March 31, 2008.
COLUMBIA, Md. -- MICROS Systems, Inc. (Nasdaq: MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2008 third quarter ended March 31, 2008.
FINANCIAL HIGHLIGHTS
Tom Giannopoulos, MICROS's Chairman and CEO, stated: "We are pleased with the financial results for the third quarter and the first nine months of our fiscal year as demand for our products and services remained strong. We look forward to the fourth quarter and beyond as we continue certain large deployments and prepare for the release of new, innovative products."
Revenue guidance for the fiscal year 2008 ending June 30, 2008 is projected to be more than $930.0 million. This guidance is an increase from the August 2007 revenue guidance of $910.0 million to $915.0 million. Earnings guidance for the fiscal year 2008 ending June 30, 2008 is for
non-GAAP net income of at least $111.0 million, excluding the projected share-based payment charge, or non-GAAP earnings per diluted share of $1.32. Guidance for GAAP net income is at least $97.5 million, or earnings per diluted share of $1.16.
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. An example of a forward looking statement includes the statements in the paragraphs above where MICROS provides guidance for its fiscal year ending June 30, 2008. 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, such as hurricanes and tsunamis; 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 April 30, 2008. 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
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
Third quarter ended Nine months ended
March 31, March 31,
2008 2007 2008 2007
Revenue:
Hardware $65,289 $58,541 $197,384 $168,144
Software 37,910 34,032 113,278 94,540
Service 133,988 107,983 386,958 301,448
Total revenue 237,187 200,556 697,620 564,132
Cost of sales:
Hardware 42,882 37,745 127,105 107,981
Software 7,648 7,597 25,671 21,593
Service 62,398 50,199 180,783 142,020
Total cost of sales 112,928 95,541 333,559 271,594
Gross margin 124,259 105,015 364,061 292,538
Selling, general and
administrative expenses 72,465 62,316 213,948 177,773
Research and development
expenses 10,139 8,761 28,675 23,412
Depreciation and amortization 3,280 2,961 10,755 9,122
Stock option expense (*) 3,616 3,763 13,444 9,273
Total operating expenses 89,500 77,801 266,822 219,580
Income from operations 34,759 27,214 97,239 72,958
Non-operating income, net 3,329 2,731 10,504 7,357
Income before taxes, minority
interests, and equity in net
earnings of affiliates 38,088 29,945 107,743 80,315
Income tax provision 12,378 10,156 35,862 26,893
Income before minority
interests and equity in net
earnings of affiliates 25,710 19,789 71,881 53,422
Minority interests and equity
in net earnings of affiliates (564) (339) (1,342) (844)
Net income $25,146 $19,450 $70,539 $52,578
Net income per common
share - diluted $0.30 $0.23 $0.84 $0.64
Weighted-average number of
shares outstanding -
diluted 83,174 83,347 83,532 82,391
Reconciliation of GAAP Net Income and EPS, and Net Income and EPS before
share-based payment charge, i.e. stock option expense
Net income $25,146 $19,450 $70,539 $52,578
Add back: Stock option
expense (*)
Selling, general and
administrative expenses 3,373 3,581 12,645 8,851
Research and development
expenses 243 182 799 422
Total stock option expense 3,616 3,763 13,444 9,273
Subtract: Total tax effect on
stock option expense 801 867 3,315 1,981
Net income (before share-based
payment charge) $27,961 $22,346 $80,668 $59,870
Net income per common share-
diluted (before share-based
payment charge): $0.34 $0.27 $0.97 $0.73
We believe the inclusion of the above non-GAAP measure, excluding the
effect of share-based payment charge, will be useful to investors because
it will enhance the comparability of our results in recent periods to
results in periods prior to our adoption of FAS 123(R). We also believe
inclusion of this measure will enhance comparability of our results to
results of our competitors, particularly those who did not adopt FAS
123(R) during one or more periods included in their public filings, and to
the analysts' forecasts because the analysts continue to forecast
excluding the effect of share-based payment charge, 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-cash share-based payment charges can have a
significant impact on reported GAAP net income and diluted net income
per share.
-- Other companies may utilize non-cash share-based payments to a
significantly greater or lesser degree in relation to overall
compensation than MICROS.
-- 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)
March 31, June 30,
2008 2007
ASSETS
Current assets:
Cash and cash equivalents $374,802 $242,702
Short-term investments 0 86,950
Accounts receivable, net 193,124 180,203
Inventory, net 61,475 47,790
Deferred income taxes 17,513 16,683
Prepaid expenses and other current assets 32,910 27,650
Total current assets 679,824 601,978
Investment, non-current 69,650 0
Property, plant and equipment, net 29,053 27,955
Deferred income taxes, non-current 22,831 23,145
Goodwill 156,319 138,332
Intangible assets, net 16,400 14,509
Purchased and internally developed
software costs, net 33,519 36,296
Other assets 6,929 4,541
Total assets $1,014,525 $846,756
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank lines of credit $1,053 $2,308
Accounts payable 49,644 43,126
Accrued expenses and other current
liabilities 127,431 117,142
Income taxes payable 1,588 8,094
Deferred service revenue 122,220 86,742
Total current liabilities 301,936 257,412
Income taxes payable, non-current 16,665 0
Deferred income taxes, non-current 15,419 15,934
Other non-current liabilities 18,362 17,554
Total liabilities 352,382 290,900
Minority interests and minority ownership
put arrangement 7,103 4,723
Commitments and contingencies
Shareholders' equity:
Common stock 510 507
Capital in excess of par 147,843 149,089
Retained earnings 450,197 382,785
Accumulated other comprehensive income 56,490 18,752
Total shareholders' equity 655,040 551,133
Total liabilities and shareholders'
equity $1,014,525 $846,756
Contact
Peter J. Rogers
United States - Phone: +1-443-285-8059
Email: progers@micros.com
Organization
Oracle Hospitality
https://www.oracle.com/industries/hospitality/index.html
7031 Columbia Gateway Drive
USA
- Columbia, MD 21046-2289
Tollfree: (866) 287-4736
Email: oraclehosp_ww@oracle.com
Recent News
 Oracle Approved by IHG Hotels & Resorts as a Property Management Provider |
|
PPHE Hotel Group Implements Oracle OPERA Cloud to Improve Operations and Drive Innovation |
|
Oracle Named a Leader in IDC MarketScape Worldwide Hospitality Property Management Systems 2025 Vendor Assessment |
