Exhibit 99

 

News Release

 

Release Date: October 24, 2013	Contact:	Peter J. Rogers, Jr.
		Executive Vice President, Investor Relations
		443-285-8059
		progers@micros.com

 

 

MICROS REPORTS FISCAL 2014 FIRST QUARTER RESULTS

RECORD FIRST FISCAL QUARTER REVENUE

 

 

Columbia, MD – October 24, 2013—MICROS Systems, Inc. (NASDAQ:MCRS), a leading provider of information technology solutions for the hospitality and retail industries, today announced the results for its fiscal 2014 first quarter ended September 30, 2013.

 

FINANCIAL HIGHLIGHTS

 

·

Revenue for the quarter was $314.7 million, an increase of $14.9 million, or 5.0%, over the same period last year.

 

·

GAAP net income for the quarter was $32.3 million, a decrease of $8.8 million, or 21.4%, versus the same period last year

 

·

GAAP diluted earnings per share (EPS) for the quarter was $0.42 per share, a decrease of $0.08, or 16.0%, 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 a one-time gain on a settlement of auction rate securities are as follows:

 

-

Non-GAAP net income for the quarter was $38.6 million, a decrease of $7.8 million, or 16.9%, versus the same period last year.

 

-

Non-GAAP diluted EPS for the quarter was $0.50, a decrease of $0.07, or 12.3%, versus the same period last year.

 

·

MICROS’s revenue was a Company record for a first fiscal quarter.

 

 

Peter A. Altabef, MICROS’s President and CEO, stated, “ We are pleased with our revenue growth in this environment, with especially strong growth in the United States and Canada.“

 

MICROS’s financial guidance for fiscal 2014 remains the same as previously provided in August 2013 with revenue between $1.295 and $1.32 Billion and Non-GAAP EPS between $2.46 and $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 October 24, 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.
All other product and brand names are the property of their respective owners.

 

 

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
		September 30,
		2013				2012
Revenue:
Hardware		$	66,532			$	63,759
Software			34,361				30,778
Service			213,822				205,314
Total revenue			314,715				299,851
Cost of sales:
Hardware			43,247				43,057
Software			5,401				5,365
Service			103,640				98,096
Stock option expense			99				73
Total cost of sales			152,387				146,591
Gross margin			162,328				153,260
Selling, general and administrative expenses			78,026				72,648
Research and development expenses			18,878				16,366
Depreciation and amortization			4,394				4,117
Stock option expense			4,891				4,137
Torex amortization expense			775				1,408
Torex restructuring charge			216				1,397
Litigation charge			2,800				0
Total operating expenses			109,980				100,073
Income from operations			52,348				53,187
Non-operating income (expense):
Interest income, net			889				1,176
Interest expense - litigation charge			(900	)			0
Gain on settlement - auction rate securities			338				0
Other non-operating income, net			152				(329	)
Total non-operating income , net			479				847
Income before taxes			52,827				54,034
Income tax provision			20,496				12,968
Net income			32,331				41,066
Less:  Net income attributable to noncontrolling interest			(60	)			(2	)
Net Income attributable to MICROS Systems, Inc. (GAAP)		$	32,271			$	41,064
Net Income per diluted common share attributable to MICROS Systems, Inc.		$	0.42			$	0.50
Weighted-average number of shares outstanding - diluted			77,712				81,969

 

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.		$	32,271			$	41,064
Add back:
Stock option expense
Selling, general and administrative expenses			4,404				3,700
Research and development expenses			487				437
Cost of sales			99				73
			4,990				4,210
Litigation charge, including accrued interest expense			3,700				0
Torex amortization expense			775				1,408
Torex restructuring charge			216				1,397
Gain on settlement - auction rate securities			(338	)			0
Total add back			9,343				7,015
Subtract tax effect on:
Stock option expense			1,558				1,264
Litigation charge, including accrued interest expense			1,410				0
Torex amortization expense			22				59
Torex restructuring charge			49				349
Non-GAAP Net Income attributable to MICROS Systems, Inc.		$	38,575			$	46,407
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.		$	0.50			$	0.57

 

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)

 

		September 30, 2013				June 30, 2013
ASSETS
Current assets:
Cash and cash equivalents and short-term investments		$	595,559			$	634,069
Accounts receivable, net			232,281				228,455
Inventory			54,297				49,273
Income taxes receivable			11,939				12,771
Deferred income taxes			15,315				15,022
Prepaid expenses and other current assets			58,772				44,648
Total current assets			968,163				984,238
Long-term investments			0				0
Property, plant and equipment, net			51,729				44,127
Deferred income taxes, non-current			48,041				50,186
Goodwill			447,709				432,950
Intangible assets, net			38,151				37,754
Purchased and internally developed software costs, net			34,325				32,543
Other assets			7,488				7,240
Total Assets		$	1,595,606			$	1,589,038
LIABILITIES AND EQUITY
Current liabilities:
Bank lines of credit		$	-			$	1,757
Accounts payable			71,479				73,099
Accrued expenses and other current liabilities			150,750				155,491
Income taxes payable			12,009				11,002
Deferred revenue			203,366				177,236
Total current liabilities			437,604				418,585
Income taxes payable, non-current			38,052				35,019
Deferred income taxes, non-current			1,186				1,157
Other non-current liabilities			16,004				16,007
Total liabilities			492,846				470,768
Commitments and contingencies
Equity:
MICROS Systems, Inc. stockholders’ equity:
Common stock			1,882				1,918
Capital in excess of par			0				0
Retained earnings			1,093,614				1,136,763
Accumulated other comprehensive income (loss)			3,903				(23,625	)
Total MICROS Systems, Inc. stockholders’ equity			1,099,399				1,115,056
Noncontrolling interest			3,361				3,214
Total Equity			1,102,760				1,118,270
Total Liabilities and Equity		$	1,595,606			$	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)

 

		Three Months Ended
		September 30,
		2013				2012
Cash flows from operating activities:
Net income		$	32,331			$	41,066
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			5,169				5,525
Share-based compensation			4,990				4,210
Amortization of capitalized software			1,517				972
Provision for losses on accounts receivable			600				1,306
Litigation reserve, including interest expense			3,700				-
Net (gain) loss on disposal of property, plant and equipment			-				(41	)
Changes in operating assets and liabilities (net of impact of acquisitions):
Decrease (increase) in accounts receivable			144				(5,957	)
Increase in inventory			(4,082	)			(3,828	)
Increase in prepaid expenses and other assets			(12,851	)			(9,033	)
Decrease in accounts payable			(2,803	)			(7,327	)
Decrease in accrued expenses and other current liabilities			(10,074	)			(30,379	)
Increase (decrease) in income taxes assets and liabilities			7,863				(8,954	)
Increase in deferred revenue			22,503				18,462
Net cash flows provided by operating activities			49,007				6,022
Cash flows from investing activities:
Proceeds from maturities of investments			39,369				16,553
Purchases of investments			(46,375	)			(4,029	)
Purchases of property, plant and equipment			(10,968	)			(3,796	)
Internally developed software costs			(2,028	)			(850	)
Net cash paid for acquisitions, net of cash acquired			-				(129	)
Other			-				43
Net cash flows (used in) provided by investing activities			(20,002	)			7,792
Cash flows from financing activities:
Repurchases of common stock			(91,603	)			(13,165	)
Proceeds from stock option exercises			10,137				4,364
Realized tax benefits from stock option exercises			886				1,370
Principal payments on line of credit			(1,795	)			-
Other			(33	)			(26	)
Net cash flows used in financing activities			(82,408	)			(7,457	)
Effect of exchange rate changes on cash and cash equivalents			7,313				4,885
Net (decrease) increase in cash and cash equivalents			(46,090	)			11,242
Cash and cash equivalents at beginning of year			486,023				562,786
Cash and cash equivalents at end of year		$	439,933			$	574,028