MICROS Reports Fiscal 2012 First Quarter Results

Contact:

Peter J. Rogers, Jr.

Executive Vice President, Investor Relations

443-285-8059

[email protected]

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)

Three Months Ended

September 30,

2011

2010

Revenue:

Hardware

$                                          48,409

$44,266

Software

33,273

27,889

Service

174,876

161,259

Total revenue

256,558

233,414

Cost of sales:

Hardware

30,163

29,955

Software

4,859

5,826

Service

77,083

71,178

Stock option expense

37

35

Total cost of sales

112,142

106,994

Gross margin

144,416

126,420

Selling, general and administrative expenses

72,751

62,191

Research and development expenses

11,026

10,661

Depreciation and amortization

4,236

4,118

Stock option expense

2,968

2,610

Total operating expenses

90,981

79,580

Income from operations

53,435

46,840

Non-operating income (expense):

Interest income, net

1,815

1,056

Change in credit based impairment, net of realized gain on redemption

-

92

Other non-operating (expense) income, net

547

(900)

Total non-operating income, net

2,362

248

Income before taxes

55,797

47,088

Income tax provision

18,414

15,393

Net income

37,383

31,695

Less:  Net income attributable to noncontrolling interest

(151)

(78)

Net Income attributable to MICROS Systems, Inc. (GAAP)

$                                          37,232

$31,617

Net Income per diluted common share attributable toMICROS Systems, Inc.

$                                              0.45

$    0.39

Weighted-average number of shares outstanding - diluted

82,410

82,023

Reconciliation of GAAP Net Income and EPS attributable to MICROS Systems, Inc. toNon-GAAP Net Income and EPS attributable to MICROS Systems, Inc.

Net Income attributable to MICROS Systems, Inc.

$                                          37,232

$31,617

Add back:

Stock option expense

   Selling, general and administrative expenses

2,659

2,484

   Research and development expenses

309

126

   Cost of sales

37

35

3,005

2,645

Credit based impairment charge, net of realized gain on redemption

-

(92)

Total add back

3,005

2,553

Subtract tax effect on stock option expense

943

789

Non-GAAP Net Income attributable to MICROS Systems, Inc.

$                                          39,294

$33,381

Non-GAAP Net Income per Diluted Common Share attributable toMICROS Systems, Inc.

$                                              0.48

$    0.41

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.

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited - in thousands)

September 30,2011

June 30,2011

ASSETS

Current assets:

    Cash and cash equivalents and short-term investments

$                           735,425

$   780,265

    Accounts receivable, net

177,074

181,833

    Inventory, net

40,451

38,119

    Deferred income taxes

19,674

21,036

    Prepaid expenses and other current assets

37,926

30,454

          Total current assets

1,010,550

1,051,707

Long-term investments

43,482

46,226

Property, plant and equipment, net

28,021

28,145

Deferred income taxes, non-current

21,716

20,798

Goodwill

237,779

242,319

Intangible assets, net

17,361

19,293

Purchased and internally developed software costs, net

18,152

18,710

Other assets

5,941

5,820

Total Assets

$                        1,383,002

$1,433,018

LIABILITIES AND EQUITY

Current liabilities:

    Accounts payable

$                             50,081

$     54,851

    Accrued expenses and other current liabilities

128,160

148,901

    Income taxes payable

1,503

7,705

    Deferred revenue

151,879

143,238

        Total current liabilities

331,623

354,695

Income taxes payable, non-current

35,348

32,309

Deferred income taxes, non-current

6,190

8,261

Other non-current liabilities

15,069

14,502

        Total liabilities

388,230

409,767

Commitments and contingencies

Equity:

 MICROS Systems, Inc. shareholders’ equity:

    Common stock

2,007

2,020

    Capital in excess of par

111,779

132,529

    Retained earnings

871,071

833,839

    Accumulated other comprehensive income

3,631

48,323

         Total MICROS Systems, Inc. shareholders’ equity

988,488

1,016,711

 Noncontrolling interest

6,284

6,540

Total Equity

994,772

1,023,251

Total Liabilities and Equity

$                        1,383,002

$1,433,018