Micros Systems (MCRS) 8-K Micros Reports Fiscal 2010 Second Quarter Results

Exhibit 99.1

news
Release Date: February 4, 2010	Contact:  Peter J. Rogers, Jr.
	Executive Vice President, Investor Relations
	443-285-8059
	progers@micros.com

MICROS REPORTS FISCAL 2010 SECOND QUARTER RESULTS

REVENUE, NET INCOME AND EPS EXCEED EXPECTATIONS

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 2010 second quarter ended December 31, 2009.

 FINANCIAL HIGHLIGHTS

- Revenue for the quarter was $225.6 million.

- Revenue for the six-month period was $437.0 million.

- GAAP net income for the quarter was $26.1 million.

- GAAP net income for the six-month per was $50.3 million.

- GAAP diluted EPS for the quarter was $0.32 per share.

- GAAP diluted EPS for the six-month period was $0.62 per share.

- Non-GAAP financial results, excluding the effect of charges for stock options and impairment on auction rate securities, are as follows:

- Non-GAAP net income for the quarter was $29.0 million.

- Non-GAAP net income for the six-month period was $55.7 million.

- Non-GAAP diluted EPS for the quarter was $0.36 per share.

- Non-GAAP diluted EPS for the six-month period was $0.69 per share.

The financial results for the second fiscal quarter exceeded consensus expectations.

Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are very pleased with the financial results for the quarter as revenue, net income and earnings per share exceeded expectations.  We are hopeful that business conditions will continue to improve.”

MICROS expects to file its fiscal 2010 second quarter 10-Q on or before February 16, 2010.  The financial statements reported today reflect adjustments necessitated by certain fraudulent activities recently uncovered in our Japanese subsidiary and perpetrated by one employee who is not a member of senior management.  The Company immediately initiated an investigation, which is now substantially complete, and determined that the cumulative income statement effect over the last five fiscal years of this activity is an overstatement of revenue of approximately $6.9 million and pre-tax income of approximately $4.4 million.  The Company does not believe that adjustments to correct information in any prior reporting period would be material. The condensed consolidated statements of operations and cash flows reported today do not reflect cumulative adjustments, but include adjustments for the periods presented.  To the extent that prior period information is included in future SEC filings and in future public statements, the information will reflect the adjustments relevant to those prior periods.

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MICROS’s stock is traded through NASDAQ under the symbol MCRS.  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 February 4, 2010.  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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News
Release Date: February 4, 2010	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)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2009			2008			2009			2008
Revenue:
Hardware	$	45,793		$	55,646		$	89,099		$	119,118
Software		30,499			37,679			55,192			75,177
Service		149,355			143,184			292,757			285,846
Total revenue		225,647			236,509			437,048			480,141
Cost of sales:
Hardware		30,364			34,326			58,416			77,179
Software		7,045			6,679			12,432			13,737
Service		63,259			69,530			125,396			137,313
Total cost of sales		100,668			110,535			196,244			228,229
Gross margin		124,979			125,974			240,804			251,912
Selling, general and administrative expenses		67,124			68,848			129,339			142,696
Research and development expenses		9,560			10,412			20,430			20,674
Depreciation and amortization		4,319			4,291			8,161			8,378
Stock option expense		4,378			4,099			7,429			7,832
Total operating expenses		85,381			87,650			165,359			179,580
Income from operations		39,598			38,324			75,445			72,332
Non-operating income (expense):
Interest income (expense), net		825			2,429			1,877			5,538
Credit based impairment charge		-			-			(387	)		-
Other non-operating (expense) income, net		(427	)		(267	)		(435	)		419
Total non-operating income, net		398			2,162			1,055			5,957
Income before taxes		39,996			40,486			76,500			78,289
Income tax provision		13,334			14,074			25,471			27,130
Net income		26,662			26,412			51,029			51,159
Less:  Net income attributable to noncontrolling interest		(532	)		(234	)		(755	)		(683	)
Net Income attributable to MICROS Systems, Inc. (GAAP)	$	26,130		$	26,178		$	50,274		$	50,476
Net Income per Diluted Common Share attributable to MICROS Systems, Inc. common shareholder	$	0.32		$	0.32		$	0.62		$	0.61
Weighted-average number of shares outstanding - diluted		81,234			81,202			81,283			81,691

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.	$	26,130	$	26,178	$	50,274	$	50,476
Add back:
Stock option expense
Selling, general and administrative expenses		4,235		3,886		7,139		7,411
Research and development expenses		143		213		290		421
		4,378		4,099		7,429		7,832
Credit based impairment charge		-		-		387		-
		4,378		4,099		7,816		7,832
Subtract:  Tax effect on Stock option expense		1,464		978		2,406		1,819
Non-GAAP Net Income attributable to MICROS Systems, Inc.	$	29,044	$	29,299	$	55,684	$	56,489
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.	$	0.36	$	0.36	$	0.69	$	0.69

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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, limitingthe usefulness of those measures for comparative purposes.

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News
Release Date: February 4, 2010	Contact:	Peter J. Rogers, Jr
		EVP, Investor Relations
		443-285-8059

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited - in thousands)

	December 31, 2009		June 30, 2009
ASSETS
Current assets:
Cash and cash equivalents and short-term investments	$	466,101	$	438,936
Accounts receivable, net		148,856		155,211
Inventory, net		36,994		39,783
Deferred income taxes		21,979		19,438
Prepaid expenses and other current assets		31,687		27,238
Total current assets		705,617		680,606
Long-term investments		64,716		57,823
Property, plant and equipment, net		30,547		30,520
Deferred income taxes, non-current		14,109		11,375
Goodwill		216,305		190,739
Intangible assets, net		23,259		17,709
Purchased and internally developed software costs, net		22,388		25,749
Other assets		6,251		6,345
Total Assets	$	1,083,192	$	1,020,866
LIABILITIES AND EQUITY
Current liabilities:
Bank lines of credit	$	1,370	$	1,090
Accounts payable		37,571		38,445
Accrued expenses and other current liabilities		112,596		104,821
Income taxes payable		8,340		7,432
Deferred revenue		118,408		112,146
Total current liabilities		278,285		263,934
Income taxes payable, non-current		21,359		19,611
Deferred income taxes, non-current		2,288		1,752
Other non-current liabilities		11,950		10,539
Total liabilities		313,882		295,836
Commitments and contingencies
Equity:
MICROS Systems, Inc. shareholders’ equity:
Common stock		498		502
Capital in excess of par		109,378		127,145
Retained earnings		625,602		575,095
Accumulated other comprehensive income		27,104		16,254
Total MICROS Systems, Inc. shareholders’ equity		762,582		718,996
Noncontrolling interest		6,728		6,034
Total Equity		769,310		725,030
Total Liabilities and Equity	$	1,083,192	$	1,020,866

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