Micros Tops Guidance, Stock Up

MICROS Systems, Inc. (MCRS - Analyst Report) reported revenues of $274.1 million in the fourth quarter of fiscal 2011, up 10.4% year over year.

On a segment basis, Service revenues came in at $182.0 million, up 12.3% year over year. Hardware revenues came in at $56.9 million, up 9.5% year over year. Software revenues came in at $35.0 million, up 2.9% year over year.

Geographically, revenues from domestic operations were 46% of the total and international operations accounted for 54% of the total revenues.

Gross margin improved to 56.5% from 54.9% in the year-ago quarter. Operating margin came in at 24.8% from 21.8% in the year-earlier quarter. Net income came in at $41.5 million, up 22.6% year over year.

Earnings per share (EPS) for the quarter were $0.50 compared to $0.42 in the year-ago quarter. During the fourth quarter, Micros recorded an impairment charge of $4.2 million related to its investments in auction rate securities.

Excluding one-time items, net income came in at $0.55 per share, easily beating the Zacks Consensus Estimate of $0.47.

Revenue for fiscal 2011 came in at $1,007.9 million, up 10.2% from a year-ago. Net income for the fiscal year was $144.1 million, up 26.0% year over year. EPS for the fiscal year was $1.74, up from $1.41 in fiscal 2010.  

Management expects revenues of $1,111,000 in fiscal 2012. EPS (excluding onetime items and stock-based compensation) is forecasted at $2.09.

During 2011, MICROS purchased 708,000 shares of which 444,000 were purchased in the fourth quarter. Days sales outstanding were 59.7 days compared to 62.2 days last quarter. At the end of the quarter, inventory came of $38.1 million, an increase of $2.4 million from the prior quarter. Inventory turns for the fourth quarter were 9.3 in line with 9.4 recorded last year. Deferred revenue came in at $146.6 million, up 17.7% year over year.

Going forward, the strong results and positive guidance should boost the stock price.

Read the full analyst report on MCRS