Exhibit 99.1
News | micros ® |
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| MICROS Systems, Inc. |
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| 7031 Columbia Gateway Drive |
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| Columbia, Maryland 21046-2289 |
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Release Date: April 30, 2003 | Contact: Peter J. Rogers, Jr. |
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| Vice President, Investor Relations |
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| (443) 285-8059 |
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MICROS REPORTS FISCAL 2003 THIRD QUARTER RESULTS:
RECORD REVENUE FOR THIRD QUARTER; NET INCOME AND EPS
EXCEED EXPECTATIONS
Columbia, Maryland… MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the hospitality industry, today announced the results for its fiscal 2003 third quarter ended March 31, 2003. Revenue for the quarter was $97.6 million, an increase of $5.2 million, or 5.6%, over the same period last year. The quarterly revenue was a record for MICROS’s fiscal third quarter. Net income for the quarter was $5.4 million, an increase of $1.7 million, or 45.7%, over the year ago third quarter. Earnings per share, on a diluted basis, were $0.31 per share, an increase of $0.10 per share, or 47.6%, over the year ago earnings of $0.21 per share.
For the nine-month period ending March 31, 2003, MICROS’s revenue was $279.6 million, an increase of $12.9 million, or 4.8%, over the same period last year. Net income for the nine-month period was $13.0 million, an increase of $5.9 million, or 84.4%, over the year ago period. Earnings per share, on a diluted basis, were $0.74, an increase of $0.34 per share, or 85.0%, over the year ago earnings of $0.40 per share.
In the first quarter of fiscal 2003, MICROS adopted Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets.” Under this Statement, the Company is not recording goodwill amortization expense for fiscal 2003. For comparison purposes, the effect of goodwill amortization for the fiscal 2002 third quarter was $0.08 per diluted share and $0.22 per diluted share on a nine-month basis.
Tom Giannopoulos, MICROS’s Chairman and CEO stated: “We are pleased with the record quarterly revenue and improved profitability. The significant number of new contracts in the quarter is testament to the growing acceptance of both the Opera suite of products and the latest restaurant applications, including RES 3000 and ‘mymicros.net’. It is our belief that we remain well-positioned with our broad and advanced portfolio of products as the economy improves.”
MICROS’s management guidance for the fiscal 2003 fourth quarter ending June 30, 2003 is for revenue between $100 million and $105 million and net income between $6.2 million and $7.7 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.
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MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited – in thousands, except per share amounts)
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| Third Quarter Ended March 31, |
| Nine Months Ended March 31, |
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| 2003 |
| 2002 |
| 2003 |
| 2002 |
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Revenue: |
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Hardware and software |
| $ | 49,825 |
| $ | 50,028 |
| $ | 143,996 |
| $ | 140,223 |
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Service |
| 47,765 |
| 42,350 |
| 135,653 |
| 126,565 |
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Total revenue |
| 97,590 |
| 92,378 |
| 279,649 |
| 266,788 |
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Cost of sales: |
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Hardware and software |
| 28,149 |
| 27,720 |
| 81,120 |
| 78,475 |
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Service |
| 22,062 |
| 20,816 |
| 62,163 |
| 61,329 |
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Total cost of sales |
| 50,211 |
| 48,536 |
| 143,283 |
| 139,804 |
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Gross margin |
| 47,379 |
| 43,842 |
| 136,366 |
| 126,984 |
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Selling, general and administrative expenses |
| 31,626 |
| 30,702 |
| 93,752 |
| 89,732 |
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Research and development expenses |
| 4,245 |
| 4,587 |
| 13,380 |
| 14,148 |
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Depreciation and amortization |
| 1,995 |
| 4,025 |
| 6,170 |
| 11,856 |
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Total operating expenses |
| 37,866 |
| 39,314 |
| 113,302 |
| 115,736 |
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Income from operations |
| 9,513 |
| 4,528 |
| 23,064 |
| 11,248 |
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Non-operating (expense) income, net |
| (439 | ) | 1,050 |
| (873 | ) | 187 |
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Income before taxes, minority interest, and equity in net earnings of affiliates |
| 9,074 |
| 5,578 |
| 22,191 |
| 11,435 |
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Income tax provision |
| 3,631 |
| 1,770 |
| 8,877 |
| 3,996 |
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Income before minority interest and equity in net earnings of affiliates |
| 5,443 |
| 3,808 |
| 13,314 |
| 7,439 |
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Minority interest and equity in net earnings of affiliates |
| (74 | ) | (123 | ) | (319 | ) | (390 | ) | ||||
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Net income |
| $ | 5,369 |
| $ | 3,685 |
| $ | 12,995 |
| $ | 7,049 |
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Net income per common share: |
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Basic |
| $ | 0.31 |
| $ | 0.21 |
| $ | 0.75 |
| $ | 0.40 |
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Diluted |
| $ | 0.31 |
| $ | 0.21 |
| $ | 0.74 |
| $ | 0.40 |
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Weighted-average number of shares outstanding: |
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Basic |
| 17,351 |
| 17,516 |
| 17,408 |
| 17,504 |
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Diluted |
| 17,575 |
| 17,888 |
| 17,663 |
| 17,785 |
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MICROS SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited - in thousands)
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| March 31, |
| June 30, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 56,531 |
| $ | 66,638 |
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Accounts receivable, net |
| 91,439 |
| 86,918 |
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Inventories, net |
| 33,832 |
| 31,211 |
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Deferred income taxes |
| 7,103 |
| 7,008 |
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Prepaid expenses and other current assets |
| 15,403 |
| 12,756 |
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Total current assets |
| 204,308 |
| 204,531 |
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Property, plant and equipment, net |
| 19,562 |
| 21,467 |
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Deferred income taxes, non-current |
| 20,307 |
| 20,707 |
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Goodwill and intangible assets, net |
| 30,237 |
| 32,055 |
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Purchased and internally developed software costs, net |
| 32,092 |
| 30,303 |
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Other assets |
| 3,207 |
| 3,767 |
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Total assets |
| $ | 309,713 |
| $ | 312,830 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Bank lines of credit |
| $ | 4,131 |
| $ | 18,699 |
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Current portion of capital lease obligations |
| 131 |
| 147 |
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Accounts payable |
| 20,338 |
| 25,955 |
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Accrued expenses and other current liabilities |
| 33,391 |
| 34,554 |
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Income taxes payable |
| 3,497 |
| 7,303 |
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Deferred income taxes |
| 797 |
| 547 |
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Deferred service revenue |
| 41,935 |
| 33,841 |
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Total current liabilities |
| 104,220 |
| 121,046 |
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Capital lease obligations, net of current portion |
| 284 |
| 279 |
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Deferred income taxes, non-current |
| 9,716 |
| 9,933 |
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Other non-current liabilities |
| 1,441 |
| 1,232 |
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Commitments and contingencies |
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Minority interests |
| 2,326 |
| 1,978 |
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Shareholders’ equity: |
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Common stock |
| 433 |
| 438 |
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Capital in excess of par |
| 52,140 |
| 56,867 |
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Retained earnings |
| 143,594 |
| 130,599 |
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Accumulated other comprehensive loss |
| (4,441 | ) | (9,542 | ) | ||
Total shareholders’ equity |
| 191,726 |
| 178,362 |
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Total liabilities and shareholders’ equity |
| $ | 309,713 |
| $ | 312,830 |
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