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

Exhibit 99.1

news
Release Date: August 26, 2010	Contact:	Peter J. Rogers, Jr.
		Executive Vice President, Investor Relations
		443-285-8059
		progers@micros.com

MICROS REPORTS FISCAL 2010 RESULTS

RECORD OPERATING INCOME, NET INCOME AND EPS;

REVENUE, OPERATING INCOME, NET INCOME AND EPS EXCEED EXPECTATIONS;

NEW STOCK BUYBACK PLAN APPROVED

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 fourth quarter and fiscal year ending June 30, 2010.  

FINANCIAL HIGHLIGHTS

- Revenue for the fiscal 2010 fourth quarter was $248.2 million, an increase of $25.4 million, or 11.4% over the same period last year.

- Revenue for the fiscal year was $914.3 million, an increase of $6.6 million, or 0.7%, over the same periodlast year.

- GAAP net income for the quarter was $33.9 million, an increase of $11.0 million, or 48.2% over the same period last year.

- GAAP net income for the fiscal year was $114.4 million, an increase of $18.1 million, or 18.8%, over the sameperiod last year.

- GAAP diluted earnings per share (EPS) for the quarter was $0.42, an increase of $0.14, or 50%, over the same period last year.

- GAAP diluted earnings per share for the fiscal year was $1.41, an increase of $0.24, or 20.5%, over the sameperiod last year.

During the fourth quarter, we recorded an impairment charge of $4.4 million related to our investments in auction rate securities.

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

· Non-GAAP net income for the quarter was $39.8 million, an increase of $11.6 million, or 41.3%, over the same period last year.

· Non-GAAP net income for the fiscal year was $127.2 million, an increase of $17.3 million, or 15.7%, over the same period last year.

· Non-GAAP diluted EPS for the quarter was $0.49, an increase of $0.15, or 44.1%, over the same period last year.

· Non-GAAP diluted EPS for the fiscal year $1.57, an increase of $0.23, or 17.2%, over the same period last year.

Page 1 of 5

The financial results for the fourth fiscal quarter exceeded consensus expectations. The operating income, net income and EPS for the quarter and fiscal year were records for MICROS.

Tom Giannopoulos, MICROS’s Chairman and CEO, stated, “We are very pleased with our excellent fourth quarter results, achieving record operating income, net income and EPS for both the quarter and our fiscal year.  The strong finish to our fiscal year bodes well for the future.”

MICROS’s financial guidance for fiscal 2011 is for revenue between $1,000 million and $1,005 million and net income between $140 million and $142 million.

NEW STOCK BUYBACK APPROVED

On August 24, 2010, our Board of Directors approved the purchase of an additional two million shares of our common stock.   The new plan will take effect once the current two million share buyback plan of August 2009 is completed. Under the new plan, which is the same as the current plan, shares will be purchased from time to time in the open market as business conditions warrant.

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.  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 August 26, 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.

Page 2 of 5

News
Release Date: August 26, 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						Fiscal Year Ended
	June 30,						June 30,
	2010			2009			2010			2009
Revenue:
Hardware	$	52,027		$	47,959		$	188,333		$	209,834
Software		34,072			30,119			118,788			132,912
Service		162,118			144,762			607,198			564,979
Total revenue		248,217			222,840			914,319			907,725
Cost of sales:
Hardware		31,074			30,891			119,489			134,352
Software		7,197			5,804			25,731			25,570
Service		73,548			65,792			267,586			264,881
Stock option expense		32			0			32			0
Restructuring related		0			681			0			681
Total cost of sales		111,851			103,168			412,838			425,484
Gross margin		136,366			119,672			501,481			482,241
Selling, general and administrative expenses		66,755			60,936			262,146			265,029
Research and development expenses		10,947			11,137			41,718			41,838
Depreciation and amortization		4,476			4,978			17,311			17,545
Stock option expense		2,529			2,882			12,333			13,900
Restructuring related		0			3,094			0			3,094
Total operating expenses		84,707			83,027			333,508			341,406
Income from operations		51,659			36,645			167,973			140,835
Non-operating income (expense):
Interest income (expense), net		1,094			1,089			3,817			7,786
Credit based impairment charge		(4,396	)		(1,266	)		(4,783	)		(1,266	)
Other non-operating (expense) income, net		1,028			(1,020	)		1,118			(493	)
Total non-operating income, net		(2,274	)		(1,197	)		152			6,027
Income before taxes		49,385			35,448			168,125			146,862
Income tax provision		15,152			12,149			52,745			49,173
Net income		34,233			23,299			115,380			97,689
Less:  Net income attributable to noncontrolling interest		(353	)		(435	)		(1,027	)		(1,397	)
Net Income attributable to MICROS Systems, Inc. (GAAP)	$	33,880		$	22,864		$	114,353		$	96,292
Net Income per Diluted Common Share attributable to MICROS Systems, Inc.	$	0.42		$	0.28		$	1.41		$	1.17
Weighted-average number of shares outstanding - diluted		81,871			81,537			81,448			81,461

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.	$	33,880	$	22,864	$	114,353	$	96,292
Add back:
Stock option expense
Selling, general and administrative expenses		2,417		2,744		11,822		13,108
Research and development expenses		112		138		511		792
Cost of sales		32		-		32		-
		2,561		2,882		12,365		13,900
Restructuring charge included in operating expenses		-		3,094		-		3,094
Restructuring related cost of sales		-		681		-		681
Credit based impairment charge		4,396		1,266		4,783		1,266
Total Add back		6,957		7,923		17,148		18,941
Subtract tax effect on:
Stock option expense		1,061		1,455		4,283		4,100
Restructuring related cost of sales		-		1,186		-		1,186
		1,061		2,641		4,283		5,286
Non-GAAP Net Income attributable to MICROS Systems, Inc.	$	39,776	$	28,146	$	127,218	$	109,947
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.	$	0.49	$	0.34	$	1.57	$	1.34

Page 3 of 5

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, limiting the usefulness of those measures for comparative purposes.

Page 4 of 5

News
Release Date: August 26, 2010	Contact:	Peter J. Rogers, Jr
		EVP, Investor Relations
		443-285-8059

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited - in thousands)

	June 30, 2010			June 30, 2009
ASSETS
Current assets:
Cash and cash equivalents and short-term investments	$	545,298		$	438,936
Accounts receivable, net		153,066			155,212
Inventory, net		35,103			39,783
Deferred income taxes		19,624			19,870
Prepaid expenses and other current assets		27,004			27,238
Total current assets		780,095			681,039
Long-term investments		59,884			57,823
Property, plant and equipment, net		27,349			30,520
Deferred income taxes, non-current		13,556			11,456
Goodwill		213,825			190,739
Intangible assets, net		19,590			17,709
Purchased and internally developed software costs, net		17,468			25,749
Other assets		6,524			6,344
Total Assets	$	1,138,291		$	1,021,379
LIABILITIES AND EQUITY
Current liabilities:
Bank lines of credit	$	1,442		$	1,090
Accounts payable		44,783			38,445
Accrued expenses and other current liabilities		135,469			104,821
Income taxes payable		5,856			7,944
Deferred revenue		124,498			112,146
Total current liabilities		312,048			264,446
Income taxes payable, non-current		22,737			19,611
Deferred income taxes, non-current		2,590			1,752
Other non-current liabilities		11,304			10,539
Total liabilities		348,679			296,348
Commitments and contingencies
Equity:
MICROS Systems, Inc. shareholders’ equity:
Common stock		500			502
Capital in excess of par		118,963			127,146
Retained earnings		689,750			575,095
Accumulated other comprehensive income		(25,833	)		16,254
Total MICROS Systems, Inc. shareholders’ equity		783,380			718,997
Noncontrolling interest		6,232			6,034
Total Equity		789,612			725,031
Total Liabilities and Equity	$	1,138,291		$	1,021,379

Page 5 of 5