Exhibit 99

  

 

  

 

Release Date: August 21, 2014		Contact:  Peter J. Rogers, Jr.
		Executive Vice President, Investor Relations
		443-285-8059

 

 

MICROS REPORTS FISCAL 2014 RESULTS

RECORD QUARTERLY AND FISCAL YEAR REVENUE, NET INCOME AND EPS

 

 

 

Columbia, MD – August 21, 2014— MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the food & beverage, hotel and retail industries, today announced the results for its fiscal 2014 fourth quarter and year ending June 30, 2014.

 

FINANCIAL HIGHLIGHTS

 

·

Revenue for the quarter was $396.1 million, an increase of $67.5 million, or 20.6%, versus the year ago period.

 

·

Revenue for the fiscal year was $1.405 billion, an increase of $137.3 million, or 10.8%, versus the year ago period.

 

·

GAAP net income for the quarter was $56.0 million, an increase of $14.0 million, or 33.4%, versus the year ago period.

 

·

GAAP net income for the fiscal year was $182.0 million, an increase of $10.6 million, or 6.2%, versus the year ago period.

 

·

GAAP diluted earnings per share (EPS) for the quarter was $0.74 per share, an increase of $0.21, or 39.6%, versus the year ago period.

 

·

GAAP diluted EPS for the fiscal year was $2.37, an increase of $0.25, or 11.8%, versus the year ago period.

 

·

Non-GAAP financial results, excluding the effect of charges for stock options, Oracle transaction related expenses, 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 $63.5 million, an increase of $14.6 million, or 29.9%, versus the year ago period.

 

-

Non-GAAP net income for the fiscal year was $205.3 million, an increase of $13.4 million, or 7.0%, versus the year ago period.

 

 

-

Non-GAAP diluted EPS for the quarter was $0.84, an increase of $0.22, or 35.5%, versus the year ago period.

 

-

Non-GAAP diluted EPS for the fiscal year was $2.67, an increase of $0.29, or 12.2%, versus the year ago period.

 

MICROS’s quarterly and fiscal year revenue, net income (GAAP and Non-GAAP) and EPS (GAAP and Non-GAAP) were Company records.

 

MICROS will not be hosting a conference call in conjunction with these results. For more information, or to access the financial results, please visit www.micros.com/InvestorRelations/

 

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.

 

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/InvestorsRelations/

 

 

 

 

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)

 

 

		Three Months Ended								Fiscal Year Ended
		June 30,								June 30,
		2014				2013				2014				2013
Revenue:
Hardware		$	103,271			$	74,125			$	319,520			$	269,651
Software			48,155				36,688				166,516				143,034
Service			244,719				217,796				919,361				855,400
Total revenue			396,145				328,609				1,405,397				1,268,085
Cost of sales:
Hardware			64,957				47,382				204,351				175,248
Software			5,233				5,743				24,752				22,178
Service			115,930				102,365				439,816				406,429
Stock option expense			108				94				374				338
Total cost of sales			186,228				155,584				669,293				604,193
Gross margin			209,917				173,025				736,104				663,892
Selling, general and administrative expenses			96,582				86,182				347,411				317,035
Research and development expenses			20,712				19,101				79,997				70,962
Depreciation and amortization			5,026				4,439				18,685				16,770
Stock option expense			5,554				4,742				21,683				20,764
Oracle transaction related expenses			2,050				-				2,050				-
Torex amortization expense			809				1,386				3,401				5,803
Torex restructuring charge			1,251				3,095				1,467				5,548
Litigation charge			0				0				2,800				0
Total operating expenses			131,984				118,945				477,494				436,882
Income from operations			77,933				54,080				258,610				227,010
Non-operating income (expense):
Interest income, net			957				1,034				3,501				4,258
Interest expense - litigation charge			-				-				(900	)			0
Gain on settlement/sale - auction rate securities			0				0				338				3,494
Other non-operating income (expense), net			373				(637	)			(173	)			(957	)
Total non-operating income , net			1,330				397				2,766				6,795
Income before taxes			79,263				54,477				261,376				233,805
Income tax provision			23,116				12,332				79,197				61,958
Net income			56,147				42,145				182,179				171,847
Less:  Net income attributable to noncontrolling interest			(113	)			(140	)			(165	)			(429	)
Net Income attributable to MICROS Systems, Inc. (GAAP)		$	56,034			$	42,005			$	182,014			$	171,418
Net Income per diluted common share attributable to MICROS Systems, Inc.		$	0.74			$	0.53			$	2.37			$	2.12
Weighted-average number of shares outstanding - diluted			75,986				79,192				76,803				80,772

 

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.		$	56,034			$	42,005			$	182,014			$	171,418
Add back:
Stock option expense
Selling, general and administrative expenses			5,095				4,358				19,652				19,124
Research and development expenses			459				384				2,031				1,640
Cost of sales			108				94				374				338
			5,662				4,836				22,057				21,102
Oracle transaction related expenses			2,050				-				2,050				-
Litigation charge, including accrued interest expense			-				-				3,700				0
Torex amortization expense			809				1,386				3,401				5,803
Torex restructuring charge			1,251				3,095				1,467				5,548
Gain on settlement/sale - auction rate securities			0				0				(338	)			(3,494	)
Total add back			9,772				9,317				32,337				28,959
Subtract tax effect on:
Oracle transaction related expenses			266				-				266				-
Stock option expense			1,697				1,495				6,912				6,721
Litigation charge, including accrued interest expense			-				-				1,410				0
Torex amortization expense			23				47				90				224
Torex restructuring charge			297				871				347				1,512
Non-GAAP Net Income attributable to MICROS Systems, Inc.		$	63,523			$	48,909			$	205,326			$	191,920
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.		$	0.84			$	0.62			$	2.67			$	2.38

  

 

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.

  

 

 

  

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited - in thousands)

 

 

		June 30, 2014				June 30, 2013
ASSETS
Current assets:
Cash and cash equivalents and short-term investments		$	699,808			$	634,069
Accounts receivable, net			287,616				228,455
Inventory			57,583				49,273
Income taxes receivable			1,619				12,771
Deferred income taxes			13,715				15,022
Prepaid expenses and other current assets			46,129				44,648
Total current assets			1,106,470				984,238
Property, plant and equipment, net			57,966				44,127
Deferred income taxes, non-current			44,661				50,186
Goodwill			458,820				432,950
Intangible assets, net			35,140				37,754
Purchased and internally developed software costs, net			40,669				32,543
Other assets			8,918				7,240
Total Assets		$	1,752,644			$	1,589,038
LIABILITIES AND EQUITY
Current liabilities:
Bank lines of credit		$	-			$	1,757
Accounts payable			78,231				73,099
Accrued expenses and other current liabilities			180,973				155,491
Income taxes payable			8,198				11,002
Deferred revenue			193,897				177,236
Total current liabilities			461,299				418,585
Income taxes payable, non-current			45,429				35,019
Deferred income taxes, non-current			543				1,157
Other non-current liabilities			15,915				16,007
Total liabilities			523,186				470,768
Commitments and contingencies
Equity:
MICROS Systems, Inc. stockholders’ equity:
Common stock			1,871				1,918
Retained earnings			1,203,030				1,136,763
Accumulated other comprehensive income (loss)			21,298				(23,625	)
Total MICROS Systems, Inc. stockholders’ equity			1,226,199				1,115,056
Noncontrolling interest			3,259				3,214
Total Equity			1,229,458				1,118,270
Total Liabilities and Equity		$	1,752,644			$	1,589,038

  

 

 

 

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - in thousands)

 

		Fiscal Year Ended
		June 30,
		2014				2013
Cash flows from operating activities:
Net income		$	182,179			$	171,847
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			22,086				22,573
Share-based compensation			22,057				21,102
Amortization of capitalized software			6,483				5,208
Provision for losses on accounts receivable			1,540				3,563
Litigation reserve, including interest expense			-				-
Gain on sales of auction rate securities			-				(4,094	)
Other-than-temporary impairment losses on investments, net			-				600
Provision for (benefit from) deferred income taxes			7,310				(2,702	)
Net (gain) loss on disposal of property, plant and equipment			28				-
Other			106				-
Changes in operating assets and liabilities (net of impact of acquisitions):
(Increase) decrease in accounts receivable			(53,237	)			2,430
Increase in inventory			(6,982	)			(5,302	)
Decrease (increase) in prepaid expenses and other assets			1,191				(7,833	)
Increase in accounts payable			3,198				3,163
Increase (decrease) in accrued expenses and other current liabilities			24,061				(13,682	)
Increase (decrease) in income taxes assets and liabilities			17,951				(2,587	)
Increase in deferred revenue			11,490				9,239
Net cash flows provided by operating activities			239,461				203,525
Cash flows from investing activities:
Proceeds from maturities of investments			187,636				56,620
Proceeds from sales of auction rate securities			-				42,119
Purchases of investments			(110,984	)			(186,371	)
Purchases of property, plant and equipment			(31,627	)			(23,282	)
Internally developed and purchased software costs			(12,448	)			(4,290	)
Other			(1,415	)			153
Net cash flows provided by (used in) investing activities			31,162				(115,051	)
Cash flows from financing activities:
Repurchases of common stock			(215,721	)			(176,603	)
Proceeds from stock option exercises			74,026				9,056
Proceeds from advance on line of credit			539				4,014
Realized tax benefits from stock option exercises			3,763				3,323
Principal payments on line of credit			(1,893	)			(2,061	)
Cash paid for acquisition of non-controlling interest			-				(846	)
Other			(189	)			9
Net cash flows used in financing activities			(139,475	)			(163,108	)
Effect of exchange rate changes on cash and cash equivalents			9,200				(2,129	)
Net increase (decrease) in cash and cash equivalents			140,348				(76,763	)
Cash and cash equivalents at beginning of year			486,023				562,786
Cash and cash equivalents at end of year		$	626,371			$	486,023