Micros Systems (MCRS) 8-K Micros Reports Fiscal 2008 Second Quarter Results

Exhibit 99.1

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Release Date: January 31, 2008	Contact:	Peter J. Rogers, Jr.
		Executive Vice President, Investor Relations
		443-285-8059
		progers@micros.com

MICROS REPORTS FISCAL 2008 SECOND QUARTER RESULTS

RECORD SECOND QUARTER REVENUE, NET INCOME AND EPS

Columbia, Maryland... MICROS Systems, Inc. (Nasdaq:MCRS), a leading supplier of information systems to the hospitality and retail industries, today announced the results for its fiscal 2008 second quarter ended December 31, 2007.

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 January 8, 2008, the Company’s Board of Directors approved a two-for-one stock split of the Company’s common stock, which will be executed in the form of a stock dividend of one share for each share held by shareholders on record as of January 22, 2008. GAAP earnings per diluted share, retroactively adjusted to reflect the announced two-for-one stock split are as follows:

	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 March 31, 2008, is for revenue between $228.0 million and $232.0 million, net income between $23.8 million and $25.2 million, or diluted EPS between $0.56 and $0.59. Guidance for net income, excluding the projected share-based payment charge for the third quarter, is between $26.8 million and $28.2 million, or non-GAAP diluted EPS of $0.63 to $0.67.

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 year ending June 30, 2008. 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, such as hurricanes and tsunamis; 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 January 31, 2008. 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.

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Release Date: January 31, 2008	Contact:	Peter J. Rogers, Jr.
		EVP, Investor Relations
		443-285-8059

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.

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Release Date: January 31, 2008	Contact:	Peter J. Rogers, Jr.
		EVP, Investor Relations
		443-285-8059

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