Form 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly
Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended December 31, 2002
Commission file number 0-9993
MICROS SYSTEMS, INC.
(Exact name of Registrant as specified in its charter)
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MARYLAND |
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52-1101488 |
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(State of incorporation) |
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(I.R.S. Employer Identification Number) |
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7031 Columbia Gateway Drive, Columbia, Maryland 21046-2289 |
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(Address of principal executive offices) (Zip code) |
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Registrant’s telephone number, including area code: 443-285-6000 |
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Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such report(s)), and (2) has been subject to such filing requirements for the past 90 days.
YES ý NO o
Indicate by check mark whether the Registrant is an Accelerated Filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934.
YES ý NO o
As of January 31, 2003, there were 17,361,828 shares of Common Stock, $0.025 par value, outstanding.
MICROS SYSTEMS, INC. AND SUBSIDIARIES
Form 10-Q
For the Quarter Ended December 31, 2002
Part I - Financial Information
Item 1. Financial Statements
General
The information contained in this report is furnished for the Registrant, MICROS Systems, Inc., and its subsidiaries (referred to collectively herein as “MICROS” or the “Company”). In the opinion of management, the information in this report contains all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the results for the interim periods presented. The financial information presented herein should be read in conjunction with the financial statements included in the Registrant’s Form 10-K for the fiscal year ended June 30, 2002, as filed with the Securities and Exchange Commission.
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MICROS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per share data)
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December
31, |
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June 30, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
55,684 |
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$ |
66,638 |
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Accounts receivable, net of allowance for doubtful accounts of $10,065 at December 31, 2002 and $8,981 at June 30, 2002 |
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90,278 |
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86,918 |
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Inventories, net of allowance for obsolescence of $5,730 at December 31, 2002 and $4,957 at June 30, 2002 |
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35,750 |
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31,211 |
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Deferred income taxes |
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7,081 |
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7,008 |
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Prepaid expenses and other current assets |
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15,207 |
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12,756 |
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Total current assets |
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204,000 |
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204,531 |
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Property, plant and equipment, net of accumulated depreciation and amortization of $45,921 at December 31, 2002 and $42,669 at June 30, 2002 |
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20,514 |
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21,467 |
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Deferred income taxes, non-current |
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20,107 |
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20,707 |
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Goodwill and intangible assets, net of accumulated amortization of $27,989 at December 31, 2002 and $28,025 at June 30, 2002 |
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31,144 |
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32,055 |
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Purchased and internally developed software costs, net of accumulated amortization of $21,179 at December 31, 2002 and $18,248 at June 30, 2002 |
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31,568 |
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30,303 |
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Other assets |
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3,411 |
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3,767 |
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Total assets |
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$ |
310,744 |
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$ |
312,830 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Bank lines of credit |
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$ |
8,350 |
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$ |
18,699 |
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Current portion of capital lease obligations |
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132 |
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147 |
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Accounts payable |
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25,552 |
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25,955 |
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Accrued expenses and other current liabilities |
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37,395 |
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34,554 |
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Income taxes payable |
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2,986 |
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7,303 |
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Deferred income taxes |
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810 |
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547 |
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Deferred service revenue |
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35,853 |
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33,841 |
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Total current liabilities |
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111,078 |
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121,046 |
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Capital lease obligations, net of current portion |
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295 |
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279 |
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Deferred income taxes, non-current |
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9,940 |
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9,933 |
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Other non-current liabilities |
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1,342 |
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1,232 |
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Commitments and contingencies: |
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Minority interests |
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2,450 |
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1,978 |
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Shareholders’ equity: |
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Common stock, $0.025 par; authorized 50,000 shares; issued and outstanding 17,374 at December 31, 2002 and 17,521 at June 30, 2002 |
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434 |
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438 |
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Capital in excess of par |
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53,509 |
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56,867 |
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Retained earnings |
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138,225 |
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130,599 |
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Accumulated other comprehensive loss |
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(6,529 |
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(9,542 |
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Total shareholders’ equity |
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185,639 |
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178,362 |
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Total liabilities and shareholders’ equity |
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$ |
310,744 |
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$ |
312,830 |
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The accompanying notes are an integral part of the consolidated financial statements.
3
MICROS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
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Three Months Ended December 31, |
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2002 |
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2001 |
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Revenue: |
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Hardware and software |
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$ |
51,011 |
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$ |
47,497 |
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Service |
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44,537 |
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43,402 |
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Total revenue |
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95,548 |
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90,899 |
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Costs and expenses: |
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Cost of sales |
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Hardware and software |
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27,695 |
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26,409 |
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Service |
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20,278 |
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21,416 |
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Total cost of sales |
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47,973 |
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47,825 |
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Selling, general and administrative expenses |
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32,682 |
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30,350 |
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Research and development expenses |
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4,248 |
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4,735 |
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Depreciation and amortization |
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2,129 |
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4,076 |
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Total costs and expenses |
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87,032 |
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86,986 |
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Income from operations |
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8,516 |
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3,913 |
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Non-operating income (expense): |
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Interest income |
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420 |
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277 |
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Interest expense |
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(225 |
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(139 |
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Other (expense) income, net |
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(5 |
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138 |
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Total non-operating income |
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190 |
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276 |
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Income before taxes, minority interests and equity in net earnings of affiliates |
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8,706 |
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4,189 |
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Income tax provision |
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3,570 |
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1,559 |
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Income before minority interests and equity in net earnings of affiliates |
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5,136 |
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2,630 |
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Minority interests and equity in net earnings of affiliates |
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(205 |
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(145 |
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