MICROS SYSTEMS INC - FORM 8-K - EX-99 - EXHIBIT 99

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8-K - 8-K - MICROS SYSTEMS INC	v353578_8k.htm

Exhibit 99

News Release

Release Date: August 22, 2013	Contact:	Peter J. Rogers, Jr.
		Executive Vice President, Investor Relations
		443-285-8059
		progers@micros.com

MICROS REPORTS FISCAL 2013 RESULTS

RECORD FISCAL YEAR REVENUE, NET INCOME AND EPS

Columbia, Maryland ... MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the food and beverage, hotel and retail industries today announced the results for its fiscal year 2013 fourth quarter and fiscal year ending June 30, 2013.

FINANCIAL HIGHLIGHTS

Revenue for the fiscal 2013 fourth quarter was $328.6 million, an increase of $26.1 million, or 8.6%, over the same
period last year.

Revenue for the fiscal 2013 year was $1.268 billion, an increase of $160.6 million, or 14.5%, over the same period last year.

GAAP net income for the quarter was $42.0 million, a decrease of $6.2 million, or 12.9%, over the same period last year.

GAAP net income for the fiscal year was $171.4 million, an increase of $4.4 million, or 2.7%, over the same
period last year.

GAAP diluted earnings per share (EPS) for the quarter was $0.53, a decrease of $0.06, or 10.2%, over the same
period last year.

GAAP diluted EPS for the fiscal year was $2.12, an increase of $0.09, or 4.4%, over the same period last year.

Non-GAAP financial results, excluding the effect of charges for stock options, amortization of Torex intangibles, restructuring of Torex, and a one-time gain on the sale of auction rate securities are as follows:

Non-GAAP net income for the quarter was $48.9 million, a decrease of $6.8 million, or 12.2%, over the same period last year.

Non-GAAP net income for the fiscal year was $191.9 million, an increase of $9.3 million, or 5.1%, over the same period last year.

Non-GAAP diluted EPS for the quarter was $0.62, a decrease of $0.06, or 8.8%, over the same period last year.

Non-GAAP diluted EPS for the fiscal year $2.38, an increase of $0.16, or 7.2%, over the same period last year.

The fiscal year revenue, net income and EPS, on GAAP and Non-GAAP results are fiscal year records for MICROS.

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Peter A. Altabef, MICROS’s CEO, stated, “We are pleased that we achieved a record year of revenue, net income and earnings per share while continuing our strong investment in talent, product and infrastructure.“

MICROS’s financial guidance for fiscal 2014 is for revenue of $1.295 billion to $1.320 billion and Non-GAAP EPS of $2.46 to $2.50.

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 22, 2013. 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.

###

The MICROS logo is a registered trademark of MICROS Systems, Inc.

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News
	Contact:	Peter J. Rogers, Jr
		EVP, Investor Relations
		443-285-8059

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)

	Three Months Ended						Twelve Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Revenue:
Hardware	$	74,125		$	69,039		$	269,651		$	237,920
Software		36,688			37,216			143,034			142,617
Service		217,796			196,271			855,400			726,994
Total revenue		328,609			302,526			1,268,085			1,107,531

Cost of sales:
Hardware		47,382			45,254			175,248			152,242
Software		5,743			5,788			22,178			20,779
Service		102,365			86,094			406,429			319,705
Stock option expense		94			52			338			195
Total cost of sales		155,584			137,188			604,193			492,921

Gross margin		173,025			165,338			663,892			614,610

Selling, general and administrative expenses		86,182			71,574			317,035			296,815
Research and development expenses		19,101			14,176			70,962			50,792
Depreciation and amortization		4,439			4,465			16,770			15,848
Stock option expense		4,742			3,900			20,764			16,306
Torex amortization expense		1,386			329			5,803			329
Torex restructuring charge		3,095			0			5,548			0
Total operating expenses		118,945			94,444			436,882			380,090

Income from operations		54,080			70,894			227,010			234,520
Non-operating income (expense):
Interest income, net		1,034			1,603			4,258			6,788
Credit based impairment charge (realized gain on sale of auction rate securities)		0			(4,000	)		3,494			(4,000	)
Other non-operating expense, net		(637	)		(320	)		(957	)		(117	)
Total non-operating income (loss), net		397			(2,717	)		6,795			2,671

Income before taxes		54,477			68,177			233,805			237,191
Income tax provision		12,332			20,098			61,958			70,090
Net income		42,145			48,079			171,847			167,101
Less: Net (income) loss attributable to noncontrolling interest		(140	)		139			(429	)		(118	)

Net Income attributable to MICROS Systems, Inc. (GAAP)	$	42,005		$	48,218		$	171,418		$	166,983

Net Income per diluted common share attributable to MICROS Systems, Inc.	$	0.53		$	0.59		$	2.12		$	2.03
Weighted-average number of shares outstanding - diluted		79,192			82,283			80,772			82,238

Reconciliation of GAAP Net Income and EPS attributable to MICROS Systems, Inc. to
Non-GAAP Net Income and EPS attributable to MICROS Systems, Inc.

Net Income attributable to MICROS Systems, Inc.	$	42,005	$	48,218	$	171,418		$	166,983
Add back:
Stock option expense
Selling, general and administrative expenses		4,358		3,539		19,124			15,067
Research and development expenses		384		361		1,640			1,239
Cost of sales		94		52		338			195
		4,836		3,952		21,102			16,501
Credit based impairment charge (realized gain on sale of auction rate securities)		0		4,000		(3,494	)		4,000
Torex amortization expense		1,386		329		5,803			329
Torex restructuring charge		3,095		0		5,548			0
Total add back		9,317		8,281		28,959			20,830

Subtract tax effect on:
Stock option expense		1,495		819		6,721			5,163
Torex amortization expense		47		0		224			0
Torex restructuring charge		871		0		1,512			0
Non-GAAP Net Income attributable to MICROS Systems, Inc.	$	48,909	$	55,680	$	191,920		$	182,650

Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.	$	0.62	$	0.68	$	2.38		$	2.22

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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.

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News
	Contact:	Peter J. Rogers, Jr
		EVP, Investor Relations
		443-285-8059

MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands)

	June 30, 2013			June 30, 2012
ASSETS
Current assets:
Cash and cash equivalents and short-term investments	$	634,069		$	582,038
Accounts receivable, net		228,455			235,433
Inventory		49,273			44,278
Income taxes receivable		12,771			122
Deferred income taxes		15,022			17,004
Prepaid expenses and other current assets		44,648			37,221
Total current assets		984,238			916,096

Long-term investments		-			34,456
Property, plant and equipment, net		44,127			35,435
Deferred income taxes, non-current		50,186			50,326
Goodwill		432,950			444,117
Intangible assets, net		37,754			45,024
Purchased and internally developed software costs, net		32,543			33,980
Other assets		7,240			6,586
Total Assets	$	1,589,038		$	1,566,020

LIABILITIES AND EQUITY
Current liabilities:
Bank lines of credit	$	1,757		$	-
Accounts payable		73,099			69,978
Accrued expenses and other current liabilities		155,491			174,214
Income taxes payable		11,002			1,788
Deferred revenue		177,236			169,989
Total current liabilities		418,585			415,969

Income taxes payable, non-current		35,019			34,722
Deferred income taxes, non-current		1,157			2,554
Other non-current liabilities		16,007			16,644
Total liabilities		470,768			469,889

Commitments and contingencies

Equity:
MICROS Systems, Inc. shareholders’ equity:
Common stock		1,918			2,008
Capital in excess of par		-			107,662
Retained earnings		1,136,763			1,000,822
Accumulated other comprehensive loss		(23,625	)		(17,847	)
Total MICROS Systems, Inc. shareholders’ equity		1,115,056			1,092,645
Noncontrolling interest		3,214			3,486
Total Equity		1,118,270			1,096,131

Total Liabilities and Equity	$	1,589,038		$	1,566,020

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News
	Contact:	Peter J. Rogers, Jr
		EVP, Investor Relations
		443-285-8059

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - in thousands)

	Fiscal Year Ended June 30,
	2013			2012

Cash flows from operating activities:
Net income	$	171,847		$	167,101
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		22,573			16,177
Share-based compensation		21,102			16,501
Amortization of capitalized software		5,208			7,148
Provision for losses on accounts receivable		3,563			7,137
Gain on sales of long-term investments		(4,094	)		-
Other-than-temporary impairment losses on investments, net		600			4,000
Provision for (benefit from) deferred income taxes		(2,702	)		(3,436	)
Net (gain) loss on disposal of property, plant and equipment		-			642
Other		-			336
Changes in operating assets and liabilities (net of impact of acquisitions):
Decrease (increase) in accounts receivable		2,430			(40,095	)
Increase in inventory		(5,302	)		(1,751	)
Increase in prepaid expenses and other assets		(7,833	)		(1,790	)
Increase in accounts payable		3,163			2,507
(Decrease) increase in accrued expenses and other current liabilities		(13,682	)		2,551
Decrease in income taxes assets and liabilities		(2,587	)		(1,755	)
Increase in deferred revenue		9,239			4,676
Net cash flows provided by operating activities		203,525			179,949

Cash flows from investing activities:
Proceeds from maturities of investments		56,620			158,819
Proceeds from sales of investments		42,119			19,655
Purchases of investments		(186,371	)		(78,816	)
Purchases of property, plant and equipment		(23,282	)		(17,468	)
Internally developed software costs		(4,290	)		(7,197	)
Net cash paid for acquisitions, net of cash acquired		(4	)		(258,940	)
Other		157			67
Net cash flows used in investing activities		(115,051	)		(183,880	)

Cash flows from financing activities:
Repurchases of common stock		(176,603	)		(59,199	)
Proceeds from stock option exercises		9,056			14,933
Proceeds from advance on line of credit		4,014			-
Realized tax benefits from stock option exercises		3,323			4,717
Principal payments on line of credit		(2,061	)		-
Cash paid for acquisition of non-controlling interest		(846	)		(4,212	)
Other		9			(123	)
Net cash flows used in financing activities		(163,108	)		(43,884	)

Effect of exchange rate changes on cash and cash equivalents		(2,129	)		(50,658	)

Net decrease in cash and cash equivalents		(76,763	)		(98,473	)

Cash and cash equivalents at beginning of year		562,786			661,259
Cash and cash equivalents at end of year	$	486,023		$	562,786

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