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Micros Systems, Inc. has a market cap of $4.14 billion; its shares were traded at around $50.89 with a P/E ratio of 24.7 and P/S ratio of 4.1. Micros Systems, Inc. had an annual average earning growth of 23.3% over the past 10 years. GuruFocus rated Micros Systems, Inc. the business predictability rank of 3.5-star.
Highlight of Business Operations:For fiscal year 2012, cost of sales as a percent of revenue increased 0.1% to 44.5% compared to 44.4% in fiscal year 2011. Hardware cost of sales as a percent of related revenue increased primarily as a result of unfavorable product mix between MICROS hardware products sales and third party hardware sales including several large OEM and computer equipment hardware sales in fiscal year 2012 that had lower than average margin. This increase was partially offset by lower freight costs and write down of inventory as a percent of revenue compared to fiscal year 2011. Software cost of sales as a percent of related revenue decreased primarily due to lower software amortization expense (included in software cost of sales) both in amount and as a percent of revenue as compared to fiscal year 2011. The lower amortization expense reflects the fact that some of our retail capitalized software products became fully amortized in fiscal years 2011 and 2012. Service cost of sales as a percent of related revenue was 44.0% for both fiscal years 2012 and 2011. The foreign currency exchange rate fluctuations decreased our total cost of sales for the fiscal year 2012 by approximately $3.4 million compared to fiscal year 2011.
For fiscal year 2012, SG&A expenses as a percent of revenue decreased 0.3% to 28.2% compared to 28.5% in fiscal year 2012 due to our ability to continue to reduce certain of our costs. Although the SG&A expenses as a percent of revenue decreased, the dollar amount of SG&A expenses increased by approximately $24.9 million compared to fiscal year 2011, primarily due to an increase in total compensation expenses of approximately $23.4 million, principally reflecting new employees who joined our company as a result of acquisitions in fiscal years 2012 and 2011. Foreign currency exchange rate fluctuations decreased overall SG&A expenses by approximately $2.7 million.
We have recognized a net decrease in unrecognized tax benefits for the fiscal year ended June 30, 2012 as compared to fiscal year 2011, which includes a reduction in the effective tax rate of 2.1% and income tax expense by approximately $5.0 million, primarily due to the expiration of statutes of limitations. We estimate that within the next 12 months, we will decrease the unrecognized income tax benefits by between approximately $9.5 million to $11.5 million due to the expiration of statues of limitations and settlement of issues with tax authorities, which we believe would increase earnings as a result of a reduction in tax expense. However, audit outcomes and the timing of audit settlements are subject to significant uncertainty. Over the next 12 months, it is reasonably possible that our tax positions will continue to generate liabilities for uncertain tax positions.
For fiscal year 2011, cost of sales as a percent of revenue decreased 0.8% to 44.4% compared to 45.2% in fiscal year 2010. Hardware cost of sales as a percent of related revenue increased primarily as a result of a change in customer mix compared to fiscal year 2010. Software cost of sales as a percent of related revenue decreased primarily due to a favorable product mix between internally developed software products and third party software products. The decrease also reflects lower capitalized software amortization expense (included in software cost of sales) as a percent of software revenue as compared to fiscal year 2010. Service cost of sales as a percent of related revenue decreased 0.1% to 44.0% in fiscal year 2011. The foreign currency exchange rate fluctuations increased our cost of sales for the fiscal year 2011 by approximately $10.2 million compared to fiscal year 2010.
The net income attributable to us for fiscal year 2011 increased approximately $29.7 million, or 26.0%, to approximately $144.1 million, compared to fiscal year 2010. The increase is due to an increase in total revenue, an overall improvement in margin and our continued cost cutting efforts. Foreign currency exchange rate fluctuations had less than $0.1 million impact on the net income attributable to us for fiscal year 2011 compared to fiscal year 2010.
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