MICROS Systems, Inc. (MCRS) reported revenues of $248.4 million in the fourth quarter of fiscal 2010, up 11.4% year over year, surpassing the Zacks Consensus Estimate of $244 million.
On a segment basis, service revenues came in at $162.1 million, up 12.0% year over year. Hardware revenues came in at $52.0 million, down 8.5% year over year. Software revenues came in at $34.0 million, up 13.1% year over year.
Gross margin for the quarter came 54.9%, slightly down from 55.4% in the previous quarter and up from 53.7% in the year-ago quarter. Operating margin came in at 20.8%, slightly up from 19.5% in the previous quarter and 16.4% in the year-ago quarter.
Net income for the quarter came in at $33.9 million, up 48.2% year over year. Earnings per share (EPS) came in at 42 cents compared to 28 cents in the year-ago quarter. Excluding one-time charges but including stock-based compensation, EPS came in 45 cents easily beating the Zacks Consensus Estimate of 38 cents.
The unfavorable movements in foreign currency exchange negatively impacted the top-line by $3.8 million and reduced EPS by 2 cents.
As of June 30, 2010, MICROS had cash and investments of $545.3 million, up from $531.5 million at the end of the previous quarter. At the end of the quarter, inventory was $35.1 million, a decrease of $3.2 million from last quarter and a decrease of $4.7 million from last year end. Inventory turns for the fourth quarter were 9.4, up from 8.3 in March. Deferred revenue was $124.5 million, up from $118.4 million at the end of the previous quarter.
For fiscal 2010, MICROS posted revenues of $914.3 million, up 0.7% year over year and above the Zacks Consensus Estimate of $911.0 million.
Recurring maintenance and hosting-related revenues grew 14% from the prior year to $354.7 million or 58.4% of total service revenues. MICROS stated that business conditions continue to improve but still remain below the peak levels of 2008. Nevertheless, MICROS provided strong guidance for fiscal 2011 suggesting recovery of business.
For fiscal 2011, revenues are projected between $1.0 billion and $1.005 billion, up from $914.3 million in fiscal 2010. Net income is estimated at $140 million and $142 million. Earnings per share are projected between $1.71 and $1.73.
Meanwhile, the Board of Directors approved a share repurchase program authorizing MICROS to buy back an additional two million shares of common stock. The new plan will take effect once the current two million share buyback plan of August 2009 is completed. During fiscal 2010, MICROS repurchased 1,646,000 shares for approximately $11.7 million.
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