MICROS Systems Inc.
) reported adjusted earnings (excluding one-time items and
including stock-based compensation expenses) of 46 cents per
share for the first-quarter of fiscal 2014, missing the Zacks
Consensus Estimate of 47 cents.
Revenues of $314.7 million increased 4.9% year over year and
came above the Zacks Consensus Estimate of $310.0 million.
Year-over-year improvement in revenues was primarily attributed
to strong demand across the U.S. and Canada. Moreover,
year-over-year revenue growth from MICROS's Food & Beverage
and Hotels vertical positively impacted total revenue..
Segment wise, Service revenues came in at $213.8 million, up
4.1% from the previous-year quarter. Hardware revenues came in at
$66.5 million, increasing 4.4% from the year-ago quarter.
Software revenues increased 11.6% from the year-ago quarter to
Geographically, international revenues grew 2.0% from the
year-ago-quarter to $185.1 million. Revenues from the U.S. &
Canada increased 9.5% from the year-ago period to $129.6
Gross margin was 51.6%, up 50 basis points (bps) from the
year-ago quarter, primarily due to favorable business mix.
Adjusted operating expenses increased 8.8% on a year-over-year
basis to $101.3 million due to an increase in selling, general
and administrative expenses and research and development
expenses. Moreover, as percentage of revenues, operating expenses
increased 113 basis points from the year-ago quarter to
32.2%.This in turn impacted MICROS' operating performance.
Adjusted operating income increased marginally (up 0.3%) to
$56.1 million from the year-ago quarter while margins contracted
83 bps to 17.8%.
Adjusted net income (excluding one-time items and including
stock-based compensation expenses) came in at $35.1 million or 46
per share versus $43.5 million or 53 cents in the year-ago
Balance Sheet and Cash Flow
MICROS ended the quarter with cash and cash equivalents and
short-term investments of $595.6 million versus $634.1 million at
the end of the previous quarter. The company did not have any
long-term debt on its balance sheet.
The company spent around $91.6 million to buy back 1.9 million
shares for an average price of $49.52 per share.
MICROS reiterated its fiscal 2014 revenue guidance. The
company expects its fiscal 2014 revenues to be in the range of
$1.295 billion to $1.320 billion, while non-GAAP earnings per
share are expected to be in the range of $2.46 to $2.50.
MICROS' first-quarter fiscal 2014 results were mixed with the
top line beating the Zacks Consensus Estimate and increasing on a
year-over-year basis and the bottom line missing the same. The
company is expected to take care of its margins and control
expenses. The company also reiterated its fiscal 2014
Although MICROS has a decent cash position and is providing
valuable solutions to
) iPad, we remain concerned due to increasing competition from
innovative (tablet-based) Point-of-Sales (POS) solutions by its
peers Square, Revel,
). Moreover, the company's European exposure and a sluggish
macro-economic environment are the other headwinds, going
Currently, MICROS has a Zacks Rank #3 (Hold).
APPLE INC (AAPL): Free Stock Analysis Report
GROUPON INC (GRPN): Free Stock Analysis
MICROS SYS (MCRS): Free Stock Analysis Report
NCR CORP-NEW (NCR): Free Stock Analysis
To read this article on Zacks.com click here.