Headquartered in Columbia, Maryland, MICROS Systems, Inc. , recently penned a partnership agreement with Aston Hotels & Resorts, LLC, a unit of Interval Leisure Group, Inc. (IILG - Snapshot Report). The financial details of the deal were not disclosed.
As per the alliance, MICROS will be engaged in installing its OPERA Enterprise Solution across 27 locations in the Hawaiian Islands, California, and Nevada within a period of 11 months. Additionally, the company through its wide array of software solutions will be involved in controlling the management system and condo ownership of about 4000 divisions of 27 hotels, condominium resorts, villas, and cottages.
This collaboration will not only boost MICROS’ market share but also enhance the satisfaction levels of its clients by providing them with improved and user-friendly enterprise solution services. Aston Hotels & Resorts would also benefit immensely from this association and also solidify a long-lasting relationship with MICROS.
Earlier, the company reported revenues of $278 million in the third quarter of 2012, up 9.8% from the year ago quarter. The increase in revenue was driven by the company’s impressive performance in the Hardware and Software business.
We are optimistic that MICROS’ long-term contract wins and partnership agreement will continue to generate approbatory yields in the quarters ahead. However, the company faces tough competition from Mentor Graphics Corp. (MENT - Snapshot Report), Concurrent Computer Corporation and Orbotech Ltd. (ORBK - Snapshot Report), who are continuously strengthening their potentials through expanding their businesses worldwide.
The current Zacks Consensus Estimates for the fourth quarter of 2012 and for fiscal 2012 are 54 cents and $1.99, respectively. The company currently retains a Zacks #4 Rank, which translates into a short-term “Sell” rating. However, we are maintaining a long-term “Neutral” recommendation on the stock.