Micros Systems (MCRS) 8-K Micros Reports Fiscal 2011 Second Quarter Results

EXHIBIT 99.1

News
Release Date: January 27, 2011	Contact:	Peter J. Rogers, Jr.
		Executive Vice President, Investor Relations
		443-285-8059 progers@micros.com

MICROS REPORTS FISCAL 2011 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 2011 second quarter ended December 31, 2010.

FINANCIAL HIGHLIGHTS

· Revenue for the quarter was $247.1 million, an increase of $21.5 million, or 9.5%, versus the same period last year.

· Revenue for the six-month period was $480.5 million, an increase of $43.5 million, or 9.9% over the same period last year.

· GAAP net income for the quarter was $32.3 million, an increase of $6.2 million, or 23.7%, over the same period last year.

· GAAP net income for the six-month period was $63.9 million, an increase of $13.7 million, or 27.2%, over the same period last year.

· GAAP diluted earnings per share (EPS) for the quarter was $0.39 per share, an increase of $0.07, or 21.9%, over the same period last year.

· GAAP diluted EPS for the six-month period was $0.78, an increase of $0.16, or 25.8%, over the same period last year.

· Non-GAAP financial results, excluding the effect of charges for stock options, an impairment charge for auction rate securities and a charge for a lawsuit, are as follows:

- Non-GAAP net income for the quarter was $36.9 million, an increase of $7.9 million, or 27.2%, over the year ago period.

- Non-GAAP net income for the six-month period was $70.3 million, an increase of $14.6 million, or 26.3%, over the year ago period.

- Non-GAAP diluted EPS for the quarter was $0.45, an increase of $0.09, or 25.0%, over the year ago period.

- Non-GAAP diluted EPS for the six-month period was $0.85, an increase of $0.16, or 23.2%, over the year ago period.

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· MICROS’s revenue, net income and EPS results were Company records for a second fiscal quarter.

Tom Giannopoulos, MICROS’s Chairman and CEO, stated: “We are very pleased with our record financial results for the quarter and first half of our fiscal year.  The improving economic conditions of the markets we serve bode well for our future.”

MICROS’s financial guidance for fiscal 2011 is for revenue between $1 billion and $1.005 billion, with net income between $145 million and $147 million.  The revenue guidance remains the same as previously provided; while the net income guidance has been increased from the $140 million to $142 million range.

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 January 27, 2011.  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: January 27, 2011	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,
	2010			2009			2010			2009
Revenue:
Hardware	$	47,841		$	45,793		$	92,107		$	89,099
Software		33,079			30,499			60,968			55,192
Service		166,197			149,355			327,456			292,757
Total revenue		247,117			225,647			480,531			437,048
Cost of sales:
Hardware		31,353			30,364			61,308			58,416
Software		4,921			7,045			10,747			12,432
Service		73,446			63,259			144,624			125,396
Stock option expense		27			0			62			0
Total cost of sales		109,747			100,668			216,741			196,244
Gross margin		137,370			124,979			263,790			240,804
Selling, general and administrative expenses		68,351			67,124			130,542			129,339
Research and development expenses		10,806			9,560			21,467			20,430
Depreciation and amortization		4,243			4,319			8,362			8,161
Litigation reserve		3,000			0			3,000			0
Stock option expense		4,289			4,378			6,899			7,429
Total operating expenses		90,689			85,381			170,270			165,359
Income from operations		46,681			39,598			93,520			75,445
Non-operating income (expense):
Interest income, net		1,397			825			2,453			1,877
Interest expense - litigation reserve		(360	)		-			(360	)		-
Change in credit based impairment, net of realized loss on redemption		(73	)		-			19			(387	)
Other non-operating income (expense), net		505			(427	)		(395	)		(435	)
Total non-operating income, net		1,469			398			1,717			1,055
Income before taxes		48,150			39,996			95,237			76,500
Income tax provision		15,649			13,334			31,042			25,471
Net income		32,501			26,662			64,195			51,029
Less:  Net income attributable to noncontrolling interest		(173	)		(532	)		(251	)		(755	)
Net Income attributable to MICROS Systems, Inc. (GAAP)	$	32,328		$	26,130		$	63,944		$	50,274
Net Income per diluted common share attributable to MICROS Systems, Inc.	$	0.39		$	0.32		$	0.78		$	0.62
Weighted-average number of shares outstanding - diluted		82,717			81,234			82,390			81,283

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.	$	32,328	$	26,130	$	63,944		$	50,274
Add back:
Stock option expense
Selling, general and administrative expenses		4,164		4,235		6,648			7,139
Research and development expenses		125		143		251			290
Cost of sales		27		-		62			-
		4,316		4,378		6,961			7,429
Litigation reserve, including accrued interest expense		3,360		-		3,360			-
Change in credit based impairment, net of realized loss on redemption		73		-		(19	)		387
Total add back		7,749		4,378		10,302			7,816
Subtract tax effect on:
Stock option expense		1,866		1,464		2,655			2,406
Litigation reserve, including accrued interest expense		1,280		-		1,280			-
Non-GAAP Net Income attributable to MICROS Systems, Inc.	$	36,931	$	29,044	$	70,311		$	55,684
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.	$	0.45	$	0.36	$	0.85		$	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, limiting the usefulness of those measures for comparative purposes.

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News
Release Date: January 27, 2011	Contact:	Peter J. Rogers, Jr. EVP Investor Relations 443-285-8059

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited - in thousands)

	December 31, 2010		June 30, 2010
ASSETS
Current assets:
Cash and cash equivalents and short-term investments	$	662,457	$	545,298
Accounts receivable, net		145,280		153,066
Inventory, net		38,342		35,103
Deferred income taxes		18,863		19,624
Prepaid expenses and other current assets		32,442		27,004
Total current assets		897,384		780,095
Long-term investments		57,885		59,884
Property, plant and equipment, net		26,913		27,349
Deferred income taxes, non-current		15,499		13,556
Goodwill		225,558		213,825
Intangible assets, net		18,349		19,590
Purchased and internally developed software costs, net		17,845		17,468
Other assets		7,150		6,524
Total Assets	$	1,266,583	$	1,138,291
LIABILITIES AND EQUITY
Current liabilities:
Bank lines of credit	$	-	$	1,442
Accounts payable		51,165		44,783
Accrued expenses and other current liabilities		133,951		135,469
Income taxes payable		803		5,856
Deferred revenue		125,229		124,498
Total current liabilities		311,148		312,048
Income taxes payable, non-current		25,973		22,737
Deferred income taxes, non-current		4,243		2,590
Other non-current liabilities		11,597		11,304
Total liabilities		352,961		348,679
Commitments and contingencies
Equity:
MICROS Systems, Inc. shareholders’ equity:
Common stock		2,021		2,001
Capital in excess of par		139,567		117,462
Retained earnings		753,724		689,750
Accumulated other comprehensive income		12,287		(25,833	)
Total MICROS Systems, Inc. shareholders’ equity		907,599		783,380
Noncontrolling interest		6,023		6,232
Total Equity		913,622		789,612
Total Liabilities and Equity	$	1,266,583	$	1,138,291

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