MICROS Systems Inc. (MCRS, Financial) filed Quarterly Report for the period ended 2008-12-31.
MICROS Systems Inc. provides enterprise applications for the hospitality industry worldwide. MICROS Systems are currently installed in table and quick service restaurants hotels motels casinos and leisure and entertainment operations. MICROS provides property management systems and central reservation and customer information solutions under the brand MICROS-Fidelio for hotels worldwide. MICROS Systems Inc. has a market cap of $1.16 billion; its shares were traded at around $15.09 with a P/E ratio of 12.1 and P/S ratio of 1.22. MICROS Systems Inc. had an annual average earning growth of 12.6% over the past 10 years.
For the six months ended December 31, 2008, total revenue was approximately $482.0 million, an increase of approximately $21.6 million, or 4.7% compared to the same period last year. The unfavorable foreign currency exchange rate fluctuations, primarily British pound sterling, Australian dollar and Euro versus U.S. dollar, negatively affected total revenue by approximately $15.3 million. The increase in total revenue was due to increase in services revenue, partially offset by a decrease in hardware revenue. The service revenue increased primarily due to additional revenue generated as a result of the acquisition of Fry in August 2008. Excluding the additional revenue generated from Fry, recurring support revenue increased approximately 6% and installation revenue increased approximately 8% compared to the same period last year. We believe the decrease in hardware revenue is due to a slowdown in demand from our customers because of the uncertainties surrounding the current U.S. and global economic conditions.
For the three months ended December 31, 2008 and 2007, cost of sales as a percent of revenue were 46.8% and 48.1%, respectively. Hardware cost of sales as a percent of related revenue for the three months ended December 31, 2008 decreased 4.0% compared to the same period last year primarily as a result of (1) a more favorable sales mix (i.e., the sales generated from products with higher margins represented a higher percentage of total hardware sales); (2) an improvement in margins on substantially all hardware product sales; and (3) sales of certain product inventory which had previously been reserved for due to an unexpected increase in demand. Software cost of sales as a percent of related revenue decreased approximately 2.8% compared to the same period last year as a result of a 19% increase in sale of Opera suite software products compared to the same period last year. Opera suite software products are internally developed and generate higher margins than sales of third party software. Service costs as a percent of related revenue increased approximately 0.3% compared to the same period last year due to lower margins generally realized on Fry service revenue compared to MICROS service revenue, partially offset by lower costs related to recurring support services.
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MICROS Systems Inc. provides enterprise applications for the hospitality industry worldwide. MICROS Systems are currently installed in table and quick service restaurants hotels motels casinos and leisure and entertainment operations. MICROS provides property management systems and central reservation and customer information solutions under the brand MICROS-Fidelio for hotels worldwide. MICROS Systems Inc. has a market cap of $1.16 billion; its shares were traded at around $15.09 with a P/E ratio of 12.1 and P/S ratio of 1.22. MICROS Systems Inc. had an annual average earning growth of 12.6% over the past 10 years.
Highlight of Business Operations:
For the three months ended December 31, 2008, total revenue was approximately $237.9 million, a decrease of approximately $6.0 million, or 2.5% compared to the same period last year. The unfavorable foreign currency exchange rate fluctuations, primarily British pound sterling, Euro and Australian dollar versus U.S. dollar, negatively affected total revenue by approximately $17.8 million. The decrease in total revenue was also due to decreases in hardware and software revenue, substantially offset by an increase in services revenue. We believe decreases in hardware and software revenue are due to a slowdown in demand from our customers because of the uncertainties surrounding the current U.S. and global economic conditions. Services revenue compared to the same period last year increased due to additional service revenue generated as a result of the acquisition of Fry, Inc. (“Fry”) in August 2008. Excluding the additional revenue generated from Fry, recurring support revenue was relatively comparable to the same period last year, but installation revenue decreased approximately 3% compared to the same period last year due to decreases in hardware and software sales.For the six months ended December 31, 2008, total revenue was approximately $482.0 million, an increase of approximately $21.6 million, or 4.7% compared to the same period last year. The unfavorable foreign currency exchange rate fluctuations, primarily British pound sterling, Australian dollar and Euro versus U.S. dollar, negatively affected total revenue by approximately $15.3 million. The increase in total revenue was due to increase in services revenue, partially offset by a decrease in hardware revenue. The service revenue increased primarily due to additional revenue generated as a result of the acquisition of Fry in August 2008. Excluding the additional revenue generated from Fry, recurring support revenue increased approximately 6% and installation revenue increased approximately 8% compared to the same period last year. We believe the decrease in hardware revenue is due to a slowdown in demand from our customers because of the uncertainties surrounding the current U.S. and global economic conditions.
For the three months ended December 31, 2008 and 2007, cost of sales as a percent of revenue were 46.8% and 48.1%, respectively. Hardware cost of sales as a percent of related revenue for the three months ended December 31, 2008 decreased 4.0% compared to the same period last year primarily as a result of (1) a more favorable sales mix (i.e., the sales generated from products with higher margins represented a higher percentage of total hardware sales); (2) an improvement in margins on substantially all hardware product sales; and (3) sales of certain product inventory which had previously been reserved for due to an unexpected increase in demand. Software cost of sales as a percent of related revenue decreased approximately 2.8% compared to the same period last year as a result of a 19% increase in sale of Opera suite software products compared to the same period last year. Opera suite software products are internally developed and generate higher margins than sales of third party software. Service costs as a percent of related revenue increased approximately 0.3% compared to the same period last year due to lower margins generally realized on Fry service revenue compared to MICROS service revenue, partially offset by lower costs related to recurring support services.
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