Exhibit 99.1
MICROS Reports Fiscal 2005 First Quarter Results
Revenue, Net Income and EPS Exceed Expectations; Record First Quarter Revenue, Net Income and EPS
COLUMBIA, Md., Oct. 28 /PRNewswire-FirstCall/ — MICROS Systems, Inc. (Nasdaq: MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2005 first quarter ended September 30, 2004. Revenue for the quarter was $130.0 million, an increase of $23.5 million, or 22.1%, over the same period last year. Net income for the quarter was $9.7 million, an increase of $4.9 million, or 103.5%, over the year ago first quarter. Earnings per share, on a diluted basis, were $0.50, an increase of $0.25, or 100.0%, over the year ago figure of $0.25 per diluted share.
Revenue, net income and earnings per share results were records for a first fiscal quarter and also significantly exceeded consensus expectations.
Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are extremely pleased with our financial results for the first quarter and the excellent start of our 2005 fiscal year. During the quarter, we experienced strong demand for our products and services, a trend that bodes well for meeting our objectives for the rest of the fiscal year.”
MICROS’s guidance for its fiscal 2005 second quarter ending December 31, 2004 is for revenue between $128.0 million and $130.0 million, and net income between $9.0 million and $10.0 million. MICROS’s guidance for its fiscal 2005 year ending June 30, 2005 has been increased to revenue between $535.0 million and $540.0 million, and net income between $45.0 million and $46.0 million.
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. Some of those uncertainties are: product demand and market acceptance; adverse economic factors; impact of competitive products and pricing on margins; product development delays and technological difficulties; and aggressively controlling expenses. Other risks are indicated in the MICROS Form 10-K and other filings with the Securities and Exchange Commission. MICROS assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
| First Quarter Ended Sept. 30, | |||||
| Revenue: | 2004 | 2003 | |||
| Hardware | $39,301 | $33,946 | |||
| Software | 22,878 | 17,838 | |||
| Service | 67,783 | 54,633 | |||
| Total revenue | 129,962 | 106,417 | |||
| Cost of sales: | |||||
| Hardware | 26,211 | 23,742 | |||
| Software | 5,169 | 5,004 | |||
| Service | 33,448 | 25,536 | |||
| Total cost of sales | 64,828 | 54,282 | |||
| Gross margin | 65,134 | 52,135 | |||
| Selling, general and administrative expenses | 41,068 | 35,562 | |||
| Research and development expenses | 6,711 | 6,174 | |||
| Depreciation and amortization | 2,401 | 2,317 | |||
| Total operating expenses | 50,180 | 44,053 | |||
| Income from operations | 14,954 | 8,082 | |||
| Non-operating income, net | 429 | 155 | |||
| Income before taxes, minority interests, | |||||
| and equity in net earnings of affiliates | 15,383 | 8,237 | |||
| Income tax provision | 5,538 | 3,336 | |||
| Income before minority interests and equity | |||||
| in net earnings of affiliates | 9,845 | 4,901 | |||
| Minority interests and equity in net earnings | |||||
| of affiliates | (184 | ) | (154 | ) | |
| Net income | $9,661 | $4,747 | |||
| Net income per common share: | |||||
| Basic | $0.53 | $0.26 | |||
| Diluted | $0.50 | $0.25 | |||
| Weighted-average number of shares outstanding: | |||||
| Basic | 18,334 | 18,036 | |||
| Diluted | 19,309 | 18,940 | |||
MICROS SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(Unadudited - - in thousands)
| September 30, | June 30, | ||||
| 2004 | 2004 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $98,952 | $91,451 | |||
| Accounts receivable, net | 102,162 | 101,367 | |||
| Inventories, net | 38,273 | 36,095 | |||
| Deferred income taxes | 9,905 | 9,396 | |||
| Prepaid expenses and other current assets | 16,685 | 16,242 | |||
| Total current assets | 265,977 | 254,551 | |||
| Property, plant and equipment, net | 20,150 | 19,550 | |||
| Deferred income taxes, non-current | 24,393 | 24,288 | |||
| Goodwill, net | 70,813 | 70,715 | |||
| Intangible assets, net | 5,321 | 5,476 | |||
| Purchased and internally developed software | |||||
| costs, net | 41,226 | 41,112 | |||
| Other investments | 413 | 415 | |||
| Other assets | 2,664 | 2,785 | |||
| Total assets | $430,957 | $418,892 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Bank lines of credit | $2,493 | $2,481 | |||
| Current portion of capital lease obligations | 181 | 139 | |||
| Accounts payable | 24,473 | 29,681 | |||
| Accrued expenses and other current liabilities | 53,081 | 58,693 | |||
| Income taxes payable | 2,351 | 1,541 | |||
| Deferred income taxes | 333 | 512 | |||
| Deferred service revenue | 53,596 | 43,019 | |||
| Total current liabilities | 136,508 | 136,066 | |||
| Capital lease obligations, net of current portion | 167 | 166 | |||
| Deferred income taxes, non-current | 15,547 | 15,544 | |||
| Other non-current liabilities | 1,431 | 1,401 | |||
| Commitments and contingencies | |||||
| Minority interests | 2,881 | 2,742 | |||
| Shareholders’ equity: | |||||
| Common stock | 459 | 457 | |||
| Capital in excess of par | 70,545 | 71,525 | |||
| Retained earnings | 195,321 | 185,660 | |||
| Accumulated other comprehensive loss | 8,098 | 5,331 | |||
| Total shareholders’ equity | 274,423 | 262,973 | |||
| Total liabilities and shareholders’ equity | $430,957 | $418,892 | |||
SOURCE MICROS Systems, Inc.
-0- 10/28/2004
/CONTACT: Peter J. Rogers, Jr., Vice President, Investor Relations of
MICROS Systems, Inc., +1-443-285-8059 or progers@micros.com/
/Web site: http://www.micros.com/
(MCRS)
CO: MICROS Systems, Inc.
ST: Maryland
IN: CPR STW
SU: ERN
