Exhibit 99
News Release
|  |
| Release Date: October 24, 2013 | Contact: | Peter J. Rogers, Jr. |
| Executive Vice President, Investor Relations | ||
| 443-285-8059 | ||
| progers@micros.com |
MICROS REPORTS FISCAL 2014 FIRST QUARTER RESULTS
RECORD FIRST FISCAL QUARTER REVENUE
Columbia, MD –October 24, 2013—MICROS Systems, Inc. (NASDAQ:MCRS), a leading provider of information technology solutions for the hospitality and retail industries,today announced the results for its fiscal 2014 first quarter ended September 30, 2013.
FINANCIALHIGHLIGHTS
| · | Revenue for the quarter was $314.7 million, an increase of $14.9 million, or 5.0%, over the same period last year. |
| · | GAAP net income for the quarter was $32.3 million, a decrease of $8.8 million, or 21.4%, versus the same period last year |
| · | GAAP diluted earnings per share (EPS) for the quarter was $0.42 per share, a decrease of $0.08, or 16.0%, versus the same period last year. |
| · | Non-GAAP financial results, excluding the effect of charges for stock options, a litigation charge and accrued interest, amortization of Torex intangibles, restructuring of Torex, and a one-time gain on a settlement of auction rate securities are as follows: |
| - | Non-GAAP net income for the quarter was $38.6 million, a decrease of $7.8 million, or 16.9%, versus the same period last year. |
| - | Non-GAAP diluted EPS for the quarter was $0.50, a decrease of $0.07, or 12.3%, versus the same period last year. |
| · | MICROS’s revenue was a Company record for a first fiscal quarter. |
Peter A. Altabef, MICROS’s President and CEO, stated, “ We are pleased with our revenue growth in this environment, with especially strong growth in the United States and Canada.“
MICROS’s financial guidance for fiscal 2014 remains the same as previously provided in August 2013 with revenue between $1.295 and $1.32 Billion and Non-GAAP EPS between $2.46 and $2.50.
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.
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All information in this release is as of October 24, 2013. 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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The MICROS logo is a registered trademark of MICROS Systems, Inc.
All other product and brand names are the property of their respective owners.
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| News |  | |||
| 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 | ||||||||
| September 30, | ||||||||
| 2013 | 2012 | |||||||
| Revenue: | ||||||||
| Hardware | $ | 66,532 | $ | 63,759 | ||||
| Software | 34,361 | 30,778 | ||||||
| Service | 213,822 | 205,314 | ||||||
| Total revenue | 314,715 | 299,851 | ||||||
| Cost of sales: | ||||||||
| Hardware | 43,247 | 43,057 | ||||||
| Software | 5,401 | 5,365 | ||||||
| Service | 103,640 | 98,096 | ||||||
| Stock option expense | 99 | 73 | ||||||
| Total cost of sales | 152,387 | 146,591 | ||||||
| Gross margin | 162,328 | 153,260 | ||||||
| Selling, general and administrative expenses | 78,026 | 72,648 | ||||||
| Research and development expenses | 18,878 | 16,366 | ||||||
| Depreciation and amortization | 4,394 | 4,117 | ||||||
| Stock option expense | 4,891 | 4,137 | ||||||
| Torex amortization expense | 775 | 1,408 | ||||||
| Torex restructuring charge | 216 | 1,397 | ||||||
| Litigation charge | 2,800 | 0 | ||||||
| Total operating expenses | 109,980 | 100,073 | ||||||
| Income from operations | 52,348 | 53,187 | ||||||
| Non-operating income (expense): | ||||||||
| Interest income, net | 889 | 1,176 | ||||||
| Interest expense - litigation charge | (900 | ) | 0 | |||||
| Gain on settlement - auction rate securities | 338 | 0 | ||||||
| Other non-operating income, net | 152 | (329 | ) | |||||
| Total non-operating income , net | 479 | 847 | ||||||
| Income before taxes | 52,827 | 54,034 | ||||||
| Income tax provision | 20,496 | 12,968 | ||||||
| Net income | 32,331 | 41,066 | ||||||
| Less: Net income attributable to noncontrolling interest | (60 | ) | (2 | ) | ||||
| Net Income attributable to MICROS Systems, Inc. (GAAP) | $ | 32,271 | $ | 41,064 | ||||
| Net Income per diluted common share attributable to MICROS Systems, Inc. | $ | 0.42 | $ | 0.50 | ||||
| Weighted-average number of shares outstanding - diluted | 77,712 | 81,969 | ||||||
| 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. | $ | 32,271 | $ | 41,064 | ||||
| Add back: | ||||||||
| Stock option expense | ||||||||
| Selling, general and administrative expenses | 4,404 | 3,700 | ||||||
| Research and development expenses | 487 | 437 | ||||||
| Cost of sales | 99 | 73 | ||||||
| 4,990 | 4,210 | |||||||
| Litigation charge, including accrued interest expense | 3,700 | 0 | ||||||
| Torex amortization expense | 775 | 1,408 | ||||||
| Torex restructuring charge | 216 | 1,397 | ||||||
| Gain on settlement - auction rate securities | (338 | ) | 0 | |||||
| Total add back | 9,343 | 7,015 | ||||||
| Subtract tax effect on: | ||||||||
| Stock option expense | 1,558 | �� | 1,264 | |||||
| Litigation charge, including accrued interest expense | 1,410 | 0 | ||||||
| Torex amortization expense | 22 | 59 | ||||||
| Torex restructuring charge | 49 | 349 | ||||||
| Non-GAAP Net Income attributable to MICROS Systems, Inc. | $ | 38,575 | $ | 46,407 | ||||
| Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc. | $ | 0.50 | $ | 0.57 | ||||
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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 | | |||
| Contact: | Peter J. Rogers, Jr | |||
| EVP, Investor Relations | ||||
| 443-285-8059 | ||||
| MICROS SYSTEMS, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited - in thousands) |
| September 30, 2013 | June 30, 2013 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents and short-term investments | $ | 595,559 | $ | 634,069 | ||||
| Accounts receivable, net | 232,281 | 228,455 | ||||||
| Inventory | 54,297 | 49,273 | ||||||
| Income taxes receivable | 11,939 | 12,771 | ||||||
| Deferred income taxes | 15,315 | 15,022 | ||||||
| Prepaid expenses and other current assets | 58,772 | 44,648 | ||||||
| Total current assets | 968,163 | 984,238 | ||||||
| Long-term investments | 0 | 0 | ||||||
| Property, plant and equipment, net | 51,729 | 44,127 | ||||||
| Deferred income taxes, non-current | 48,041 | 50,186 | ||||||
| Goodwill | 447,709 | 432,950 | ||||||
| Intangible assets, net | 38,151 | 37,754 | ||||||
| Purchased and internally developed software costs, net | 34,325 | 32,543 | ||||||
| Other assets | 7,488 | 7,240 | ||||||
| Total Assets | $ | 1,595,606 | $ | 1,589,038 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Bank lines of credit | $ | - | $ | 1,757 | ||||
| Accounts payable | 71,479 | 73,099 | ||||||
| Accrued expenses and other current liabilities | 150,750 | 155,491 | ||||||
| Income taxes payable | 12,009 | 11,002 | ||||||
| Deferred revenue | 203,366 | 177,236 | ||||||
| Total current liabilities | 437,604 | 418,585 | ||||||
| Income taxes payable, non-current | 38,052 | 35,019 | ||||||
| Deferred income taxes, non-current | 1,186 | 1,157 | ||||||
| Other non-current liabilities | 16,004 | 16,007 | ||||||
| Total liabilities | 492,846 | 470,768 | ||||||
| Commitments and contingencies | ||||||||
| Equity: | ||||||||
| MICROS Systems, Inc. stockholders’ equity: | ||||||||
| Common stock | 1,882 | 1,918 | ||||||
| Capital in excess of par | 0 | 0 | ||||||
| Retained earnings | 1,093,614 | 1,136,763 | ||||||
| Accumulated other comprehensive income (loss) | 3,903 | (23,625 | ) | |||||
| Total MICROS Systems, Inc. stockholders’ equity | 1,099,399 | 1,115,056 | ||||||
| Noncontrolling interest | 3,361 | 3,214 | ||||||
| Total Equity | 1,102,760 | 1,118,270 | ||||||
| Total Liabilities and Equity | $ | 1,595,606 | $ | 1,589,038 | ||||
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| News | | |||
| Contact: | Peter J. Rogers, Jr | |||
| EVP, Investor Relations | ||||
| 443-285-8059 | ||||
| MICROS SYSTEMS, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited - in thousands) |
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2013 | 2012 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 32,331 | $ | 41,066 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 5,169 | 5,525 | ||||||
| Share-based compensation | 4,990 | 4,210 | ||||||
| Amortization of capitalized software | 1,517 | 972 | ||||||
| Provision for losses on accounts receivable | 600 | 1,306 | ||||||
| Litigation reserve, including interest expense | 3,700 | - | ||||||
| Net (gain) loss on disposal of property, plant and equipment | - | (41 | ) | |||||
| Changes in operating assets and liabilities (net of impact of acquisitions): | ||||||||
| Decrease (increase) in accounts receivable | 144 | (5,957 | ) | |||||
| Increase in inventory | (4,082 | ) | (3,828 | ) | ||||
| Increase in prepaid expenses and other assets | (12,851 | ) | (9,033 | ) | ||||
| Decrease in accounts payable | (2,803 | ) | (7,327 | ) | ||||
| Decrease in accrued expenses and other current liabilities | (10,074 | ) | (30,379 | ) | ||||
| Increase (decrease) in income taxes assets and liabilities | 7,863 | (8,954 | ) | |||||
| Increase in deferred revenue | 22,503 | 18,462 | ||||||
| Net cash flows provided by operating activities | 49,007 | 6,022 | ||||||
| Cash flows from investing activities: | ||||||||
| Proceeds from maturities of investments | 39,369 | 16,553 | ||||||
| Purchases of investments | (46,375 | ) | (4,029 | ) | ||||
| Purchases of property, plant and equipment | (10,968 | ) | (3,796 | ) | ||||
| Internally developed software costs | (2,028 | ) | (850 | ) | ||||
| Net cash paid for acquisitions, net of cash acquired | - | (129 | ) | |||||
| Other | - | 43 | ||||||
| Net cash flows (used in) provided by investing activities | (20,002 | ) | 7,792 | |||||
| Cash flows from financing activities: | ||||||||
| Repurchases of common stock | (91,603 | ) | (13,165 | ) | ||||
| Proceeds from stock option exercises | 10,137 | 4,364 | ||||||
| Realized tax benefits from stock option exercises | 886 | 1,370 | ||||||
| Principal payments on line of credit | (1,795 | ) | - | |||||
| Other | (33 | ) | (26 | ) | ||||
| Net cash flows used in financing activities | (82,408 | ) | (7,457 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 7,313 | 4,885 | ||||||
| Net (decrease) increase in cash and cash equivalents | (46,090 | ) | 11,242 | |||||
| Cash and cash equivalents at beginning of year | 486,023 | 562,786 | ||||||
| Cash and cash equivalents at end of year | $ | 439,933 | $ | 574,028 | ||||
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