MICROS Surpasses Estimates

MICROS Systems, Inc. (MCRS - Analyst Report) reported revenues of $270.4 million in the second quarter of fiscal 2012, up 9.4% year over year. This was in line with the Zacks Consensus Estimate.

On a segment basis, Service revenues came in at $178.4 million, rising 7.3% from the previous year quarter. Hardware revenues came in at $57.4 million, increasing 20.1% from the year-ago quarter. Software revenues came in at $34.6 million, up 4.5% from the year-ago quarter.

Geographically, revenues from domestic operations were 43% of the total and international operations accounted for 57% of the total revenue.

Gross margin came in at 56.3% compared to 55.6% in the previous year quarter, remaining flat sequentially. Operating margin came in at 20.1%, down from 20.8% in the previous quarter but up from 18.9% in the year-earlier quarter. Non-GAAP net income came in at $42.1 million, up 14.0% year over year.

Non-GAAP earnings per share (EPS) for the quarter were 51 cents compared to 45 cents in the year-ago quarter. This beat the Zacks Consensus Estimate of 48 cents per share. GAAP diluted EPS came in at 47 cents for the quarter rising from 39 cents in the previous-year quarter.

During the quarter, MICROS purchased 500,000 shares for $46.05 per share. The company still has 1.8 million shares left under its current authorization program.

In the first half of 2012, the company generated $63.5 million of cash from operating activities and spent $8.3 million in capital expenditures. Days sales outstanding were 59.6 days at the end of 2Q12. At the end of the quarter, inventory amounted to $37.3 million and inventory turns for the quarter were 9.0 compared to 8.6 a year ago. Deferred revenue came in at $137.6 million at the end of 2Q12.

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