Exhibit 99

 

News Release

 

Release Date: January 30, 2014		Contact: Peter J. Rogers, Jr.
		Executive Vice President, Investor Relations
		443-285-8059

 

 

MICROS REPORTS FISCAL 2014 SECOND QUARTER RESULTS

RECORD QUARTERLY REVENUE

NEW STOCK BUYBACK PLAN APPROVED

 

 

Columbia, MD - January 30, 2014— MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2014 second quarter ended December 31, 2013.

 

FINANCIAL HIGHLIGHTS

 

·

Revenue for the quarter was $345.6 million, an increase of $21.0 million, or 6.5%, versus the same period last year.

 

·

Revenue for the six-month period was $660.3 million, an increase of $35.9 million, or 5.8% over the same period last year.

 

·

GAAP net income for the quarter was $43.4 million, a decrease of $0.7 million, or 1.5.%, versus the same period last year.

 

·

GAAP net income for the six-month period was $75.7 million, a decrease of $9.5 million, or 11.1%, versus the same period last year.

 

·

GAAP diluted earnings per share (EPS) for the quarter was $0.57 per share, an increase of $0.03, or 5.6%, over the same period last year.

 

·

GAAP diluted EPS for the six-month period was $0.98, a decrease of $0.06, or 5.8%, versus the same period last year.

 

·

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

 

-

Non-GAAP net income for the quarter was $48.3 million, an increase of $1.3 million, or 2.7%, versus the year ago period.

 

-

Non-GAAP net income for the six-month period was $86.8 million, a decrease of $6.5 million, or 0.7%, over the year ago period.

 

 

-

Non-GAAP diluted EPS for the quarter was $0.63, an increase of $0.05, or 8.6%, over the year ago period.

 

-

Non-GAAP diluted EPS for the six-month period was $1.12, a decrease of $0.02, or 1.8%, versus the year ago period.

 

MICROS’s quarterly revenue was a Company record.

 

Peter A. Altabef, MICROS’s President and CEO, stated, “We are pleased to achieve another quarter of strong revenue growth. We are encouraged by the improving demand environment in our geographic regions and vertical markets.“

 

MICROS’s financial guidance for fiscal 2014 is for revenue between $1.320 billion and $1.345 billion and Non-GAAP EPS from $2.46 to $2.51. The guidance reflects an increase in the ranges first provided in August 2013. At that time, revenue guidance for fiscal 2014 was for revenue between $1.295 billion and $1.320 billion, and Non-GAAP EPS between $2.46 and $2.50.

 

On January 28, 2014, our Board of Directors approved the purchase of an additional $200.0 million of our common stock. This authorization will be added to the April 2013 repurchase authorization. Under the new plan, shares will be purchased from time to time in the open market as business conditions warrant.

 

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 January 30, 2014. 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.

 

 

 

 

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								Six Months Ended
		December 31,								December 31,
		2013				2012				2013				2012
Revenue:
Hardware		$	71,096			$	67,245			$	137,628			$	131,004
Software			44,758				38,747				79,119				69,525
Service			229,715				218,528				443,537				423,842
Total revenue			345,569				324,520				660,284				624,371
Cost of sales:
Hardware			45,671				43,295				88,918				86,352
Software			7,179				5,257				12,580				10,621
Service			110,414				103,767				214,054				201,864
Stock option expense			90				82				189				155
Total cost of sales			163,354				152,401				315,741				298,992
Gross margin			182,215				172,119				344,543				325,379
Selling, general and administrative expenses			85,502				79,952				163,528				152,600
Research and development expenses			21,439				17,526				40,317				33,891
Depreciation and amortization			4,669				4,207				9,062				8,324
Stock option expense			5,661				7,233				10,552				11,371
Torex amortization expense			941				1,314				1,717				2,722
Torex restructuring charge			0				296				216				1,693
Litigation charge			0				0				2,800				0
Total operating expenses			118,212				110,528				228,192				210,601
Income from operations			64,003				61,591				116,351				114,778
Non-operating income (expense):
Interest income, net			778				1,129				1,667				2,305
Interest expense - litigation charge			-				-				(900	)			0
Gain on settlement/sale - auction rate securities			0				3,494				338				3,494
Other non-operating income, net			(536	)			(635	)			(383	)			(964	)
Total non-operating income , net			242				3,988				722				4,835
Income before taxes			64,245				65,579				117,073				119,613
Income tax provision			20,687				21,289				41,184				34,257
Net income			43,558				44,290				75,889				85,356
Less:  Net income attributable to noncontrolling interest			(143	)			(204	)			(203	)			(206	)
Net Income attributable to MICROS Systems, Inc. (GAAP)		$	43,415			$	44,086			$	75,686			$	85,150
Net Income per diluted common share attributable to MICROS Systems, Inc.		$	0.57			$	0.54			$	0.98			$	1.04
Weighted-average number of shares outstanding - diluted			76,785				81,289				77,245				81,643

 

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.		$	43,415			$	44,086			$	75,686			$	85,150
Add back:
Stock option expense
Selling, general and administrative expenses			5,117				6,905				9,521				10,605
Research and development expenses			544				328				1,031				766
Cost of sales			90				82				189				155
			5,751				7,315				10,741				11,526
Litigation charge, including accrued interest expense			-				-				3,700				0
Torex amortization expense			941				1,314				1,717				2,722
Torex restructuring charge			-				296				216				1,693
Gain on settlement/sale - auction rate securities			0				(3,494	)			(338	)			(3,494	)
Total add back			6,692				5,431				16,036				12,447
Subtract tax effect on:
Stock option expense			1,817				2,391				3,374				3,655
Litigation charge, including accrued interest expense			-				-				1,410				0
Torex amortization expense			23				59				45				118
Torex restructuring charge			-				83				49				432
Non-GAAP Net Income attributable to MICROS Systems, Inc.		$	48,267			$	46,984			$	86,844			$	93,392
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.		$	0.63			$	0.58			$	1.12			$	1.14

 

 

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.

 

 

 

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

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited - in thousands)

 

		December 31, 2013				June 30, 2013
ASSETS
Current assets:
Cash and cash equivalents and short-term investments		$	627,266			$	634,069
Accounts receivable, net			221,799				228,455
Inventory			57,602				49,273
Income taxes receivable			4,599				12,771
Deferred income taxes			15,307				15,022
Prepaid expenses and other current assets			49,222				44,648
Total current assets			975,795				984,238
Property, plant and equipment, net			57,257				44,127
Deferred income taxes, non-current			48,258				50,186
Goodwill			452,780				432,950
Intangible assets, net			37,355				37,754
Purchased and internally developed software costs, net			35,539				32,543
Other assets			8,686				7,240
Total Assets		$	1,615,670			$	1,589,038
LIABILITIES AND EQUITY
Current liabilities:
Bank lines of credit		$	-			$	1,757
Accounts payable			72,313				73,099
Accrued expenses and other current liabilities			151,276				155,491
Income taxes payable			7,373				11,002
Deferred revenue			176,303				177,236
Total current liabilities			407,265				418,585
Income taxes payable, non-current			41,692				35,019
Deferred income taxes, non-current			551				1,157
Other non-current liabilities			15,646				16,007
Total liabilities			465,154				470,768
Commitments and contingencies
Equity:
MICROS Systems, Inc. stockholders’ equity:
Common stock			1,881				1,918
Capital in excess of par			0				0
Retained earnings			1,132,904				1,136,763
Accumulated other comprehensive income (loss)			12,419				(23,625	)
Total MICROS Systems, Inc. stockholders’ equity			1,147,204				1,115,056
Noncontrolling interest			3,312				3,214
Total Equity			1,150,516				1,118,270
Total Liabilities and Equity		$	1,615,670			$	1,589,038

 

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

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - in thousands)

 

		Six Months Ended
		December 31,
		2013				2012
Cash flows from operating activities:
Net income		$	75,889			$	85,356
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			10,779				11,046
Share-based compensation			10,741				11,526
Amortization of capitalized software			3,111				2,260
Provision for losses on accounts receivable			31				1,997
Litigation reserve, including interest expense			3,700				-
Gain on sales of auction rate securities			-				(4,094	)
Other-than-temporary impairment losses on investments, net			-				600
Net (gain) loss on disposal of property, plant and equipment			-				(40	)
Changes in operating assets and liabilities (net of impact of acquisitions):
Decrease in accounts receivable			12,216				23,899
Increase in inventory			(7,377	)			(7,244	)
Increase in prepaid expenses and other assets			(4,053	)			(6,303	)
Decrease in accounts payable			(2,323	)			(8,149	)
Decrease in accrued expenses and other current liabilities			(9,585	)			(31,809	)
Increase (decrease) in income taxes assets and liabilities			13,491				(4,053	)
Decrease in deferred revenue			(5,414	)			(9,257	)
Net cash flows provided by operating activities			101,206				65,735
Cash flows from investing activities:
Proceeds from maturities of investments			139,476				23,824
Proceeds from sales of auction rate securities			-				36,719
Purchases of investments			(69,705	)			(83,841	)
Purchases of property, plant and equipment			(20,854	)			(10,009	)
Internally developed software costs			(3,769	)			(2,225	)
Other			45				(122	)
Net cash flows provided by (used in) investing activities			45,193				(35,654	)
Cash flows from financing activities:
Repurchases of common stock			(111,312	)			(53,372	)
Proceeds from stock option exercises			19,080				4,655
Realized tax benefits from stock option exercises			1,830				1,426
Principal payments on line of credit			(1,795	)			-
Cash paid for acquisition of noncontrolling interest			-				(846	)
Other			(174	)			(51	)
Net cash flows used in financing activities			(92,371	)			(48,188	)
Effect of exchange rate changes on cash and cash equivalents			9,163				7,431
Net (decrease) increase in cash and cash equivalents			63,191				(10,676	)
Cash and cash equivalents at beginning of year			486,023				562,786
Cash and cash equivalents at end of year		$	549,214			$	552,110