UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13
or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended December 31, 2004
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 |
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21046-2289 |
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(Address of principal executive offices) |
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(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, 2005, there were 37,847,280 shares (after stock split) of the Registrants Common Stock, $0.0125 par value, issued & outstanding.
MICROS SYSTEMS, INC. AND SUBSIDIARIES
Form 10-Q
For the Quarter Ended December 31, 2004
Part I - Financial Information
Item 1. Financial Statements
General
The financial information contained in this report is furnished for the Registrant, MICROS Systems, Inc., and its subsidiaries (referred to collectively herein as “MICROS” or the “Company”). In the opinion of management, the information in this report contains all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the results for the interim periods presented. The financial information presented herein should be read in conjunction with the financial statements included in the Registrant’s Form 10-K for the fiscal year ended June 30, 2004, as filed with the Securities and Exchange Commission.
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MICROS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
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December 31, |
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June 30, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
106,681 |
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$ |
91,451 |
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Accounts receivable, net of allowance for doubtful accounts of $14,861 at December 31, 2004 and $11,903 at June 30, 2004 |
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108,692 |
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101,367 |
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Inventories, net of allowance for obsolescence of $6,759 at December 31, 2004 and $6,380 at June 30, 2004 |
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41,965 |
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36,095 |
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Deferred income taxes |
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10,463 |
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9,396 |
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Prepaid expenses and other current assets |
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32,861 |
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16,242 |
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Total current assets |
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300,662 |
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254,551 |
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Property, plant and equipment, net of accumulated depreciation and amortization of $64,517 at December 31, 2004 and $58,245 at June 30, 2004 |
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20,326 |
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19,550 |
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Deferred income taxes, non-current |
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24,887 |
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24,288 |
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Goodwill, net of accumulated amortization of $30,472 at December 31, 2004 and $28,687 at June 30, 2004 |
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71,228 |
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70,715 |
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Intangible assets, net of accumulated amortization of $2,701 at December 31, 2004 and $2,291 at June 30, 2004 |
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5,166 |
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5,476 |
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Purchased and internally developed software costs, net of accumulated amortization of $34,776 at December 31, 2004 and $30,484 at June 30, 2004 |
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42,151 |
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41,112 |
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Other investments |
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410 |
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415 |
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Other assets |
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2,078 |
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2,785 |
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Total assets |
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$ |
466,908 |
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$ |
418,892 |
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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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$ |
2,729 |
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$ |
2,481 |
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Current portion of capital lease obligations |
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184 |
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139 |
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Accounts payable |
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26,481 |
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29,681 |
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Accrued expenses and other current liabilities |
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55,442 |
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58,693 |
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Income taxes payable |
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4,826 |
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1,541 |
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Deferred income taxes |
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1,202 |
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512 |
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Deferred service revenue |
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44,484 |
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43,019 |
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Total current liabilities |
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135,348 |
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136,066 |
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Capital lease obligations, net of current portion |
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142 |
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166 |
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Deferred income taxes, non-current |
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15,537 |
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15,544 |
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Other non-current liabilities |
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1,493 |
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1,401 |
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Commitments and contingencies |
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Minority interests |
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2,865 |
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2,742 |
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Shareholders’ equity: |
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Common stock, $0.0125 par; authorized 50,000 shares; issued and outstanding 37,710 at December 31, 2004 and 36,670 at June 30, 2004 (1) |
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471 |
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457 |
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Capital in excess of par |
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87,079 |
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71,525 |
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Retained earnings |
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207,074 |
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185,660 |
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Accumulated other comprehensive income |
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16,899 |
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5,331 |
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Total shareholders’ equity |
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311,523 |
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262,973 |
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Total liabilities and shareholders’ equity |
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$ |
466,908 |
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$ |
418,892 |
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(1) See Footnote 1 – Basis of Presentation
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 |
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Six Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenue: |
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Hardware |
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$ |
42,631 |
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$ |
34,300 |
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$ |
81,933 |
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$ |
68,246 |
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Software |
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23,544 |
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19,975 |
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46,421 |
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36,764 |
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Service |
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75,755 |
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62,979 |
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143,538 |
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118,661 |
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Total revenue |
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141,930 |
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117,254 |
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271,892 |
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223,671 |
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Cost of sales: |
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Hardware |
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29,381 |
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24,717 |
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55,592 |
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48,457 |
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Software |
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6,092 |
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4,507 |
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11,261 |
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8,840 |
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Service |
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35,366 |
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26,958 |
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68,814 |
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53,167 |
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Total cost of sales |
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70,839 |
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56,182 |
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135,667 |
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110,464 |
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Gross margin |
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71,091 |
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61,072 |
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136,225 |
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113,207 |
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