MICROS Reports Fiscal 2014 Third Quarter Results - MSNewsNow.com - Jackson, MS

MICROS Reports Fiscal 2014 Third Quarter Results

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE MICROS Systems, Inc.

RECORD QUARTERLY REVENUE, NET INCOME AND EPS

COLUMBIA, Md., May 1, 2014 /PRNewswire/ -- 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 third quarter ended March 31, 2014. 

      FINANCIAL HIGHLIGHTS                                                                        

  • Revenue for the quarter was $349.0 million, an increase of $33.9 million, or 10.7%, versus the year ago period.
  • Revenue for the nine-month period was $1.009.3 billion, an increase of $69.8 million, or 7.4%, versus the year ago period.
  • GAAP net income for the quarter was $50.3 million, an increase of $6.0 million, or 13.6.%, versus the year ago period.
  • GAAP net income for the nine-month period was $126.0 million, a decrease of $3.4 million, or 2.7%, versus the year ago period.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.66 per share, an increase of $0.11, or 20.0%, versus the year ago period.
  • GAAP diluted EPS for the nine-month period was $1.63, an increase of $0.04, or 2.5%, versus the year ago period.
  • 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 $55.0 million, an increase of $5.3 million, or 10.8%, versus the year ago period.
    • Non-GAAP net income for the nine-month period was $141.8 million, a decrease of $1.2 million, or 0.8%, versus the year ago period.
    • Non-GAAP diluted EPS for the quarter was $0.72, an increase of $0.10, or 16.1%, versus the year ago period.
    • Non-GAAP diluted EPS for the nine-month period was $1.84, an increase of $0.08, or 4.5%, versus the year ago period.

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

Peter A. Altabef, MICROS's President and CEO, stated, "We are pleased with the strong revenue growth and profit performance this quarter. We are encouraged by an improved demand environment for our solutions from current and new clients."

MICROS's financial guidance for fiscal 2014 is for revenue between $1.360 billion and $1.385 billion and Non-GAAP EPS from $2.53 to $2.57. The guidance reflects an increase in the ranges provided in January 2014.   At that time, revenue guidance for fiscal 2014 was for revenue between $1.320 billion and $1.345 billion, and Non-GAAP EPS between $2.46 and $2.51.

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 May 1, 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.

Contact: Peter J. Rogers, Jr.
Executive Vice President, Investor Relations
443-285-8059

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)



















Three Months Ended


Nine Months Ended


March 31,


March 31,



2014


2013


2014


2013

Revenue:









Hardware

$          78,621


$          64,523


$        216,249


$       195,527


Software

39,242


36,821


118,361


106,346


Service

231,105


213,761


674,642


637,603

Total revenue

348,968


315,105


1,009,252


939,476










Cost of sales:









Hardware

50,476


41,514


139,394


127,867


Software

6,939


5,813


19,519


16,434


Service

109,832


102,201


323,886


304,064


Stock option expense

77


89


266


244

Total cost of sales

167,324


149,617


483,065


448,609










Gross margin

181,644


165,488


526,187


490,867











Selling, general and administrative expenses

87,299


78,254


250,829


230,854


Research and development expenses

18,970


17,970


59,287


51,860


Depreciation and amortization

4,597


4,008


13,658


12,332


Stock option expense

5,577


4,651


16,128


16,022


Torex amortization expense

876


1,694


2,593


4,416


Torex restructuring charge

0


760


216


2,453


Litigation charge

0


0


2,800


0

Total operating expenses

117,319


107,337


345,511


317,937










Income from operations

64,325


58,151


180,676


172,930

Non-operating income (expense):









Interest income, net

877


919


2,543


3,223


Interest expense - litigation charge

-


-


(900)


0


Gain on settlement/sale - auction rate securities

0


0


338


3,494


Other non-operating income, net

(163)


645


(546)


(319)

Total non-operating (expense) income , net

714


1,564


1,435


6,398










Income before taxes

65,039


59,715


182,111


179,328

Income tax provision 

14,896


15,370


56,080


49,627

Net income

50,143


44,345


126,031


129,701

Less:  Net loss (income) attributable to noncontrolling interest

151


(81)


(51)


(287)










Net Income attributable to MICROS Systems, Inc. (GAAP)

$          50,294


$          44,264


$        125,980


$       129,414










Net Income per diluted common share attributable to
MICROS Systems, Inc.

$              0.66


$              0.55


$               1.63


$              1.59

Weighted-average number of shares outstanding - diluted

76,771


80,502


77,081


81,272










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.

$          50,294


$          44,264


$        125,980


$       129,414

Add back:









Stock option expense









    Selling, general and administrative expenses

5,037


4,161


14,557


14,766


    Research and development expenses

540


490


1,571


1,256


    Cost of sales

77


89


266


244



5,654


4,740


16,394


16,266


Litigation charge, including accrued interest expense

-


-


3,700


0


Torex amortization expense

876


1,694


2,593


4,416


Torex restructuring charge

-


760


216


2,453


Gain on settlement/sale - auction rate securities

0


0


(338)


(3,494)


Total add back

6,530


7,194


22,565


19,641










Subtract tax effect on:









Stock option expense

1,841


1,570


5,215


5,225


Litigation charge, including accrued interest expense

-


-


1,410


0


Torex amortization expense

23


59


67


177


Torex restructuring charge

-


208


49


641

Non-GAAP Net Income attributable to MICROS Systems, Inc.

$          54,960


$          49,621


$        141,804


$       143,012










Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.

$              0.72


$              0.62


$               1.84


$              1.76




















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)








March 31,
2014


June 30,
2013

ASSETS





Current assets:





     Cash and cash equivalents and short-term investments


$             658,377


$             634,069

     Accounts receivable, net


265,069


228,455

     Inventory


63,597


49,273

    Income taxes receivable


3,646


12,771

     Deferred income taxes


14,685


15,022

     Prepaid expenses and other current assets


51,689


44,648

           Total current assets


1,057,063


984,238






Property, plant and equipment, net


58,192


44,127

Deferred income taxes, non-current


50,278


50,186

Goodwill


454,086


432,950

Intangible assets, net


36,068


37,754

Purchased and internally developed software costs, net


37,987


32,543

Other assets


9,233


7,240

Total Assets


$         1,702,907


$         1,589,038






LIABILITIES AND EQUITY





Current liabilities:





     Bank lines of credit


$                         -


$                 1,757

     Accounts payable


74,347


73,099

     Accrued expenses and other current liabilities


157,361


155,491

     Income taxes payable


9,725


11,002

     Deferred revenue


230,083


177,236

         Total current liabilities


471,516


418,585






Income taxes payable, non-current


42,467


35,019

Deferred income taxes, non-current


470


1,157

Other non-current liabilities


14,705


16,007

         Total liabilities


529,158


470,768






Commitments and contingencies










Equity:





  MICROS Systems, Inc. stockholders' equity:





     Common stock


1,871


1,918

     Retained earnings


1,152,756


1,136,763

     Accumulated other comprehensive income (loss)


15,946


(23,625)

          Total MICROS Systems, Inc. stockholders' equity


1,170,573


1,115,056

  Noncontrolling interest


3,176


3,214

Total Equity


1,173,749


1,118,270






Total Liabilities and Equity


$         1,702,907


$         1,589,038

 

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - in thousands)














 Nine Months Ended 






 March 31, 






2014


2013









Cash flows from operating activities:





Net income

$            126,031


$            129,701


Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation and amortization

16,251


16,748



Share-based compensation

16,394


16,266



Amortization of capitalized software

4,836


3,696



Provision for losses on accounts receivable

879


2,871



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

3


(48)



Changes in operating assets and liabilities (net of impact of acquisitions):







Increase in accounts receivable

(30,701)


(5,846)




Increase in inventory

(13,280)


(9,946)




Increase in prepaid expenses and other assets

(6,198)


(7,091)




Decrease in accounts payable

(410)


(5,020)




Decrease in accrued expenses and other current liabilities

(2,906)


(28,283)




Increase (decrease) in income taxes assets and liabilities

15,366


(2,089)




Increase in deferred revenue

46,780


32,430


Net cash flows provided by operating activities

176,745


139,895









Cash flows from investing activities:





Proceeds from maturities of investments

168,120


24,685


Proceeds from sales of auction rate securities

-


42,119


Purchases of investments

(94,374)


(108,423)


Purchases of property, plant and equipment

(26,639)


(15,692)


Internally developed software costs

(8,415)


(3,398)


Other


189


(299)


Net cash flows provided by (used in) investing activities

38,881


(61,008)









Cash flows from financing activities:





Repurchases of common stock

(170,616)


(90,887)


Proceeds from stock option exercises

41,470


7,326


Proceeds from advance on line of credit

-


4,014


Realized tax benefits from stock option exercises

2,639


3,069


Principal payments on line of credit

(1,795)


-


Cash paid for acquisition of non-controlling interest

-


(846)


Other


(183)


(70)


Net cash flows used in financing activities

(128,485)


(77,394)









Effect of exchange rate changes on cash and cash equivalents

9,731


1,419









Net increase in cash and cash equivalents

96,872


2,912









Cash and cash equivalents at beginning of year

486,023


562,786

Cash and cash equivalents at end of year

$            582,895


$            565,698

 

 

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow