COLUMBIA, Md.,
FINANCIAL HIGHLIGHTS -- Revenue for the quarter was $244.0 million, an increase of $54.1 million, or 28.5%, over the same period last year. -- Revenue for the six-month period was $460.4 million, an increase of $96.9 million, or 26.6% over the same period last year. -- GAAP net income for the quarter was $24.1 million, an increase of $6.1 million, or 33.7%, over the same period last year. GAAP net income for the quarter was reduced by $3.2 million ($2.0 million net of tax benefits or $0.05 diluted earnings per share (EPS)) directly related to the 120,000 stock options granted to the Company's Chairman and CEO, Mr. Giannopoulos during the quarter. The share-based payment charges relating to Mr. Giannopoulos' option grant must be taken in full in the quarter of the grant, as Mr. Giannopoulos is at retirement age in accordance with the terms of the option plan and is thereby fully vested. -- GAAP net income for the six-month period was $45.4 million, an increase of $12.3 million, or 37.0%, over the same period last year. -- GAAP diluted EPS, was $0.57 per share, an increase of $0.13, or 29.5%, over the same period last year. -- GAAP diluted EPS for the six-month period was $1.08, an increase of $0.27, or 33.3%, over the same period last year. -- Non-GAAP financial results, excluding the effect of Financial Accounting Standard (FAS) No. 123 (R), which requires us to record the share-based payment charge, are as follows: -- Non-GAAP net income for the quarter was $28.4 million, an increase of $8.2 million, or 40.8%, over the year ago period. -- Non-GAAP net income for the six-month period was $52.7 million, an increase of $15.2 million, or 40.5%, over the year ago period. -- Non-GAAP diluted EPS for the quarter was $0.68, an increase of $0.19, or 38.8%, over the year ago period. -- Non-GAAP diluted EPS for the six-month period was $1.26, an increase of $0.34, or 37.0%, over the year ago period. -- MICROS's financial results were Company records for the second fiscal quarter.
Tom Giannopoulos, MICROS's Chairman and CEO, stated: "We are very pleased with the financial results for the quarter and the first six months of the fiscal year. We continue to exceed our financial targets and continue to win new customer contracts."
On
Second quarter ended Six months ended December 31, December 31, 2007 2006 2007 2006 Diluted EPS $ 0.29 $ 0.22 $ 0.54 $ 0.40 Weighted-average number of shares outstanding - diluted 83,917 82,450 83,711 81,898
MICROS's guidance for its fiscal 2008 third quarter ending
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. An example of a forward
looking statement includes the statements in the paragraphs above where MICROS
provides guidance for its fiscal 2008 third quarter ending
All information in this release is as of
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.
MICROS SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share amounts) Second quarter ended Six months ended December 31, December 31, 2007 2006 2007 2006 Revenue: Hardware $67,194 $55,460 $132,095 $109,603 Software 44,517 32,752 75,368 60,508 Service 132,241 101,663 252,971 193,466 Total revenue 243,952 189,875 460,434 363,577 Cost of sales: Hardware 44,284 36,270 84,223 70,236 Software 9,515 6,635 18,024 13,996 Service 63,591 48,116 118,384 91,822 Total cost of sales 117,390 91,021 220,631 176,054 Gross margin 126,562 98,854 239,803 187,523 Selling, general and administrative expenses 74,130 59,867 141,484 115,456 Research and development expenses 9,423 7,858 18,536 14,651 Depreciation and amortization 3,629 3,338 7,475 6,161 Stock option expense (*) 5,983 2,695 9,827 5,510 Total operating expenses 93,165 73,758 177,322 141,778 Income from operations 33,397 25,096 62,481 45,745 Non-operating income, net 3,851 2,395 7,174 4,625 Income before taxes, minority interests, and equity in net earnings of affiliates 37,248 27,491 69,655 50,370 Income tax provision 12,627 9,072 23,483 16,737 Income before minority interests and equity in net earnings of affiliates 24,621 18,419 46,172 33,633 Minority interests and equity in net earnings of affiliates (532) (401) (779) (505) Net income $24,089 $18,018 $45,393 $33,128 PRE-stock split: Net income per common share - - diluted $0.57 $0.44 $1.08 $0.81 Weighted-average number of shares outstanding - diluted 41,959 41,225 41,856 40,949 POST-stock split (1): Net income per common share - - diluted $0.29 $0.22 $0.54 $0.40 Weighted-average number of shares outstanding - diluted 83,917 82,450 83,711 81,898 Reconciliation of GAAP Net Income and EPS, and Net Income and EPS before share-based payment charge, i.e. stock option expense Net income $24,089 $18,018 $45,393 $33,128 Add back: Stock option expense(*) Selling, general and administrative expenses 5,730 2,578 9,271 5,270 Research and development expenses 253 117 556 240 Total stock option expense 5,983 2,695 9,827 5,510 Subtract: Total tax effect on stock option expense 1,673 545 2,513 1,115 Net income (before share-based payment charge) $28,399 $20,168 $52,707 $37,523 Net income per common share-diluted (before share-based payment charge): PRE-stock split: $0.68 $0.49 $1.26 $0.92 POST-stock split (1): $0.34 $0.24 $0.63 $0.46 (1) Share data has been retroactively adjusted for the two-for-one stock split approved by Board of Directors in January 2008.
We believe the inclusion of the above non-GAAP measure, excluding the effect of share-based payment charge, will be useful to investors because it will enhance the comparability of our results in recent periods to results in periods prior to our adoption of FAS 123(R). We also believe inclusion of this measure will enhance comparability of our results to results of our competitors, particularly those who did not adopt FAS 123(R) during one or more periods included in their public filings, and to the analysts' forecasts because the analysts continue to forecast excluding the effect of share-based payment charge, 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-cash share-based payment charges can have a significant impact on reported GAAP net income and diluted net income per share. -- Other companies may utilize non-cash share-based payments to a significantly greater or lesser degree in relation to overall compensation than MICROS. -- 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) December 31, June 30, 2007 2007 ASSETS Current assets: Cash and cash equivalents $327,804 $242,702 Short-term investments 59,800 86,950 Accounts receivable, net 169,610 180,203 Inventory, net 53,354 47,790 Deferred income taxes 17,340 16,683 Prepaid expenses and other current assets 31,646 27,650 Total current assets 659,554 601,978 Property, plant and equipment, net 29,614 27,955 Deferred income taxes, non-current 24,282 23,145 Goodwill 151,667 138,332 Intangible assets, net 16,498 14,509 Purchased and internally developed software costs, net 34,333 36,296 Other assets 6,499 4,541 Total assets $922,447 $846,756 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bank lines of credit $2,480 $2,308 Accounts payable 39,381 43,126 Accrued expenses and other current liabilities 119,330 117,142 Income taxes payable 7,229 8,094 Deferred service revenue 80,264 86,742 Total current liabilities 248,684 257,412 Income taxes payable, non-current 12,313 0 Deferred income taxes, non-current 15,304 15,934 Other non-current liabilities 19,048 17,554 Total liabilities 295,349 290,900 Minority interests and minority ownership put arrangement 5,773 4,723 Commitments and contingencies Shareholders' equity: Common stock 512 507 Capital in excess of par 160,144 149,089 Retained earnings 425,204 382,785 Accumulated other comprehensive income 35,465 18,752 Total shareholders' equity 621,325 551,133 Total liabilities and shareholders' equity $922,447 $846,756
SOURCE MICROS Systems, Inc.