PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

	Page No.
(a) The following documents are filed as a part of this report:

(1) Management’s Annual Report On Internal Control Over Financial Reporting	41

(2) Financial Statements:
Report of Independent Registered Public Accounting Firm	42
Consolidated balance sheets as of June 30, 2008 and 2007	43
Consolidated statements of operations for the fiscal years ended June 30, 2008, 2007 and 2006	44
Consolidated statements of cash flows for the fiscal years ended June 30, 2008, 2007 and 2006	45
Consolidated statements of shareholders’ equity and comprehensive income for the fiscal years ended June 30, 2008, 2007 and 2006	46
Notes to consolidated financial statements	47 - 70

(3) Financial Statement Schedules:
Schedule II – Valuation and qualifying accounts and reserves	71

All other schedules are omitted because they are not applicable, not required, or the required information is included in the financial statements or notes thereto.

(4) Exhibits:

3(i)	Articles of Incorporation, as amended, are incorporated herein by reference to Exhibit 3(i) to the Form 8-K filed on November 16, 2007.
3(ii)	By-laws of the Company, as amended, are incorporated herein by reference to Exhibit 3(ii) to the Form 8-K filed on October 17, 2007.
10(a)(1)*	Amendment and Restatement of MICROS Systems, Inc. Stock Option Plan is incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-8 of the Company filed on February 16, 1990.
10(a)(2)*	First Amendment to the Amendment and Restatement of MICROS Systems, Inc. Stock Option Plan is incorporated herein by reference to Exhibit 4.2 to the Registration Statement on Form S-8 of the Company filed on February 16, 1990.
10(a)(3)*	MICROS Systems, Inc. 1991 Stock Option Plan as amended, is incorporated herein by reference to Exhibit A to the Proxy Statement of the Company for the 2006 Annual Meeting of Shareholders
10(b)*	Employment Agreement dated June 1, 1995 between MICROS Systems, Inc. and A. L. Giannopoulos is incorporated herein by reference to Exhibit 10e to the Annual Report on Form 10-K of the Company for the Fiscal Year ended June 30, 1995.
10(b)(1)*	First Amendment to Employment Agreement dated February 6, 1997 between MICROS Systems, Inc. and A. L. Giannopoulos is incorporated herein by reference to Exhibit 10 to the Quarterly Report on Form 10-Q of the Company for the period ended December 31, 1996.
10(b)(2)*	Second Amendment to Employment Agreement dated February 1, 1998 between MICROS Systems, Inc. and A. L. Giannopoulos is incorporated herein by reference to Exhibit 10 to the Quarterly Report on Form 10-Q of the Company for the period ended December 31, 1997.
10(b)(3)*	Third Amendment to Employment Agreement dated September 8, 1999 between MICROS Systems, Inc. and A. L. Giannopoulos is incorporated herein by reference to Exhibit 10g to the Annual Report on Form 10-K of the Company for the Fiscal Year ended June 30, 1999.
10(b)(4)*	Fourth Amendment to Employment Agreement dated November 19, 2001 between MICROS Systems, Inc. and A. L. Giannopoulos is incorporated herein by reference to Exhibit 10 to the Quarterly Report on Form 10-Q of the Company for the period ended December 31, 2001.
10(b)(5)*	Fifth Amendment to Employment Agreement dated November 15, 2002 between MICROS Systems, Inc. and A. L. Giannopoulos is incorporated herein by reference to Exhibit 10 to the Quarterly Report on Form 10-Q of the Company for the period ended December 31, 2002.
10(b)(6)*	Sixth Amendment to Employment Agreement dated January 28, 2004 between MICROS Systems, Inc. and A. L. Giannopoulos is incorporated herein by reference to Exhibit 10 to the Quarterly Report on Form 10-Q of the Company for the period ended December 31, 2003.
10(b)(7)*	Seventh Amendment to Employment Agreement dated August 9, 2005 between MICROS Systems, Inc. and A. L. Giannopoulos is incorporated herein by reference to Exhibit 10 to the Current Report on Form 8-K filed on August 11, 2005.
10(b)(8)*	Eighth Amendment to Employment Agreement dated June 6, 2006, between MICROS Systems, Inc. and A.L. Giannopoulos is incorporated herein by reference to Exhibit 10 to the Current Report on Form 8-K filed on June 8, 2006.
10(b)(9)*	Ninth Amendment to Employment Agreement dated June 6, 2006, between MICROS Systems, Inc. and A.L. Giannopoulos is incorporated herein by reference to Exhibit 10 to the Current Report on Form 8-K filed on November 17, 2006.

10(b)(10)*	Tenth Amendment to Employment Agreement dated June 12, 2008, between MICROS Systems, Inc. and A.L. Giannopoulos is incorporated herein by reference to Exhibit 10 to the Current Report on Form 8-K filed on June 13, 2008.
10(c)*	Consulting Agreement dated June 30, 1995 between MICROS Systems, Inc. and Louis M. Brown, Jr. is incorporated herein by reference to Exhibit 10 to the Annual Report on Form 10-K of the Company for the Fiscal Year ended June 30, 1995.
10(c)(1)*	First Amendment to Consulting Agreement dated February 1, 1999 between MICROS Systems, Inc. and Louis M. Brown, Jr. is incorporated herein by reference to Exhibit 10 to the Quarterly Report on Form 10-Q of the Company for the period ended December 31, 1998.
10(c)(2)*	Second Amendment to Consulting Agreement dated April 26, 2001 between MICROS Systems, Inc. and Louis M. Brown, Jr. is incorporated herein by reference to Exhibit 10 to the Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2001.
10(c)(3)*	Third Amendment to Consulting Agreement dated September 4, 2003 between MICROS Systems, Inc. and Louis M. Brown, Jr. is incorporated herein by reference to Exhibit 10 to the Annual Report on Form 10-K of the Company for the Fiscal Year ended June 30, 2003.
10(c)(4)*	Fourth Amendment to Consulting Agreement dated June 12, 2007 between MICROS Systems, Inc. and Louis M. Brown, Jr. is incorporated herein by reference to Exhibit 10 to the Current Report on Form 8-K filed on June 12, 2007.
10(d)*	Employment Agreement dated May 28, 1997 between MICROS Systems, Inc. and Gary C. Kaufman is incorporated herein by reference to Exhibit 10 to the Annual Report on Form 10-K of the Company for the Fiscal Year ended June 30, 1997.
10(d)(1)*	First Amendment to Employment Agreement dated October 1, 1998 between MICROS Systems, Inc. and Gary C. Kaufman is incorporated herein by reference to Exhibit 10 to the Quarterly Report on Form 10-Q of the Company for the period ended December 31, 1998.
10(d)(2)*	Second Amendment to Employment Agreement dated October 1, 1998 between MICROS Systems, Inc. and Gary C. Kaufman is incorporated herein by reference to Exhibit 10 to the Current Report on Form 8-K filed on November 17, 2006.
10(e)*	Employment Agreement dated May 28, 1997 between MICROS Systems, Inc. and Thomas L. Patz is incorporated herein by reference to Exhibit 10 to the Annual Report on Form 10-K of the Company for the Fiscal Year ended June 30, 1997.
10(e)(1)*	First Amendment to Employment Agreement dated October 1, 1998 between MICROS Systems, Inc. and Thomas L. Patz is incorporated herein by reference to Exhibit 10 to the Quarterly Report on Form 10-Q of the Company for the period ended December 31, 1998 (see 10(d)(1) above, as Mr. Patz’ amendment is an amendment identical (except for the identity of the executive and the economic terms) to that entered into by the Company with Mr. Kaufman).
10(e)(2)*	Second Amendment to Employment Agreement dated October 1, 1998 between MICROS Systems, Inc. and Thomas L. Patz is incorporated herein by reference to Exhibit 10 to the Current Report on Form 8-K filed on November 17, 2006 (see 10(d)(2) above, as Mr. Patz’ amendment is an amendment identical (except for the identity of the executive and the economic terms) to that entered into by the Company with Mr. Kaufman).
10(f)*	Restated Supplemental Executive Retirement Plan, as approved by the Board of Directors on
	April 27, 2005, is incorporated herein by reference to Exhibit 10 to the Annual Report on Form 10-K for the fiscal year ended June 30, 2006.
10(g)	Amended and Restated Credit Agreement, effective as of July 29, 2005, among MICROS Systems, Inc., DV Technology Holdings Corporation, Datavantage Corporation, MICROS Fidelio Nevada, LLC, MSI Delaware, LLC, MICROS-Fidelio Worldwide, Inc., and JTECH Communications, Inc. as Borrower, Bank of America, N.A., as administrative agent, swing line lender and L/C issuer, and Wachovia Bank, N.A., and US Bank, N.A., and Banc of America Securities LLC, as sole lead arranger and book manager, is incorporated herein by reference to Exhibit 10 to the Annual Report on Form 10-K for the fiscal year ended June 30, 2005.
10(g)(1)	Amended and Restated Credit Agreement, effective as of July 29, 2005, among MICROS-Fidelio (Ireland) Ltd., MICROS-Fidelio Systems (UK) Ltd., MICROS-Fidelio España S.L., MICROS Fidelio (Canada), Ltd., MICROS-Fidelio Brazil, Ltda., MICROS-Fidelio France S.A.S., Hospitality Technologies, S.A., MICROS-Fidelio Mexico S.A. de C.V., MICROS Systems Holding GmbH, MICROS-Fidelio GmbH, MICROS-Fidelio Software Portugal Unipessoal Lda, MICROS-Fidelio (Thailand) Co., Ltd., MICROS-Fidelio Singapore Pte Ltd., MICROS-Fidelio Software (Philippines), Inc., MICROS-Fidelio Japan Ltd., MICROS-Fidelio Australia Pty. Ltd., MICROS-Fidelio Hong Kong, Ltd., Fidelio Nordic Norway A/S, Fidelio Nordic Oy, Fidelio Nordic Sverige, A.B., Hotelbk, A.B., as Borrower, Bank Of America, N.A., as Administrative Agent, swing line lender, and L/C issuer, and Wachovia Bank N.A. and US Bank N.A., and Banc of America Securities LLC, as sole lead arranger and book manager is incorporated herein by reference to Exhibit 10 to the Annual Report on Form 10-K for the fiscal year ended June 30, 2005.
14	Code of Ethics and Business Practices is incorporated herein by reference to Exhibit 14 to the Annual Report on Form 10-K of the Company for the fiscal year ended June 30, 2004.
21	Subsidiaries of the Company (filed herewith)
23	Consent of Independent Registered Public Accounting Firm (filed herewith)
31(a)	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 (filed herewith)
31(b)	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 (filed herewith)
32(a)	Certification of Principal Executive Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. 1350 (furnished herewith)
32(b)	Certification of Principal Financial Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. 1350 (furnished herewith)

*	Management contract or compensatory plan or arrangement.

MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of MICROS Systems, Inc. (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management evaluated the Company’s internal control over financial reporting as of June 30, 2008. In making this assessment, management used the framework established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). As a result of this assessment and based on the criteria in the COSO framework, management has concluded that, as of June 30, 2008, the Company’s internal control over financial reporting was effective.

The Company’s independent auditors, PricewaterhouseCoopers LLP, have audited the Company’s internal control over financial reporting. Their opinion on the effectiveness of the Company’s internal control over financial reporting and on the Company’s financial statements is included in this Annual Report on Form 10-K.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of MICROS Systems, Inc:

In our opinion, the consolidated financial statements listed in the index appearing under Item 15(a)(1) present fairly, in all material respects, the financial position of MICROS Systems, Inc. and its subsidiaries at June 30, 2008 and June 30, 2007, and the results of their operations and their cash flows for each of the three years in the period ended June 30, 2008 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the accompanying index present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2008, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the Management's Annual Report on Internal Control over Financial Reporting under Item 8. Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

As discussed in Note 1 to the consolidated financial statements, the Company changed the manner in which it accounts for defined benefit pension and other post retirement plans effective June 30, 2007.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

[PricewaterhouseCoopers LLP (signed)]

Baltimore, Maryland

August 29, 2008

MICROS SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	June 30,
(in thousands, except par value data)	2008		2007
ASSETS
Current Assets:
Cash and cash equivalents	$	381,964	$	242,702
Short-term investments		—		86,950
Accounts receivable, net of allowance for doubtful accounts of
$28,348 at June 30, 2008 and $23,110 at June 30, 2007		192,445		180,203
Inventory, net		64,575		47,790
Deferred income taxes		18,724		16,683
Prepaid expenses and other current assets		29,737		27,650
Total current assets		687,445		601,978

Investments, non-current		65,216		—
Property, plant and equipment, net		29,165		27,955
Deferred income taxes, non-current		7,108		23,145
Goodwill		159,722		138,332
Intangible assets, net		16,168		14,509
Purchased and internally developed software costs, net of accumulated
amortization of $61,691 at June 30, 2008 and $54,708 at June 30, 2007		30,846		36,296
Other assets		7,336		4,541
Total assets	$	1,003,006	$	846,756

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Bank lines of credit	$	989	$	2,308
Accounts payable		46,843		43,126
Accrued expenses and other current liabilities		124,913		117,142
Income taxes payable		6,363		8,094
Deferred revenue		115,398		86,742
Total current liabilities		294,506		257,412

Income taxes payable, non-current		18,302		—
Deferred income taxes, non-current		2,181		15,934
Other non-current liabilities		8,103		17,554
Total liabilities		323,092		290,900

Minority interests and minority ownership put arrangement		6,898		4,723
Commitments and contingencies (Note 12)
Shareholders' Equity:
Common stock, $0.00625 par value; authorized 120,000 shares; issued and
outstanding 80,898 at June 30, 2008 and 81,096 at June 30, 2007		506		507
Capital in excess of par		131,517		149,089
Retained earnings		480,777		382,785
Accumulated other comprehensive income		60,216		18,752
Total shareholders' equity		673,016		551,133
Total liabilities and shareholders' equity	$	1,003,006	$	846,756

The accompanying notes are an integral part of the consolidated financial statements.

MICROS SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	Fiscal Year Ended June 30,
(in thousands, except per share data)	2008			2007			2006
Revenue:
Hardware	$	265,965		$	233,838		$	215,561
Software		158,699			132,820			120,093
Service		529,520			419,069			343,299
Total revenue		954,184			785,727			678,953
Cost of sales:
Hardware		171,779			149,085			144,061
Software		33,252			29,531			23,488
Service		247,954			195,600			165,721
Total cost of sales		452,985			374,216			333,270
Gross margin		501,199			411,511			345,683
Selling, general and administrative expenses		306,624			254,317			216,827
Research and development expenses		40,129			33,885			27,120
Depreciation and amortization		15,143			12,721			10,459
Total operating expenses		361,896			300,923			254,406
Income from operations		139,303			110,588			91,277
Non-operating income (expense):
Interest income		14,725			10,319			5,066
Interest expense		(286	)		(371	)		(210	)
Other income (expense), net		597			1,118			(468	)
Total non-operating income, net		15,036			11,066			4,388
Income before taxes, minority interests and equity in net earnings of affiliates		154,339			121,654			95,665
Income tax provision		52,167			40,754			31,455
Income before minority interests and equity in net earnings of affiliates		102,172			80,900			64,210
Minority interests and equity in net earnings of affiliates		(888	)		(912	)		(682	)
Net income ⁽¹⁾	$	101,284		$	79,988		$	63,528

Net income per common share ^{(1) (2)}:
Basic	$	1.23		$	1.00		$	0.82
Diluted	$	1.21		$	0.97		$	0.78

Weighted-average number of shares outstanding ⁽²⁾:
Basic		81,546			79,978			77,383
Diluted		83,346			82,581			81,248

⁽¹⁾See Note 3, "Share-based Compensation" in Notes to Consolidated Financial Statements.

⁽²⁾All share data has been retroactively adjusted for a two-for-one stock split effective February 5, 2008.

The accompanying notes are an integral part of the consolidated financial statements.

MICROS SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Fiscal Year Ended June 30,
(in thousands)	2008			2007			2006
Cash flows from operating activities:
Net income	$	101,284		$	79,988		$	63,528
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization		15,143			12,721			10,459
Amortization of capitalized software		9,385			8,392			6,978
Amortization of prior service cost		648			—			—
Provision for losses on accounts receivable excluding recoveries		7,135			3,356			5,454
Provision for inventory obsolescence		2,753			3,157			3,530
Undistributed earnings from equity investment and minority interest		888			912			682
Provision for deferred income taxes (benefit)		(1,118	)		(2,087	)		(1,950	)
Net (gain) loss on disposal of property, plant and equipment
and capitalized software		87			(237	)		1,492
Share-based compensation		17,229			13,996			9,135
Changes in assets and liabilities (net of impact of acquisitions):
Increase in accounts receivable		(4,389	)		(29,278	)		(12,306	)
Increase in inventory		(15,566	)		(1,140	)		(7,182	)
(Increase) decrease in prepaid expenses and other assets		423			(9,142	)		12,975
Increase (decrease) in accounts payable		(168	)		5,055			(2,944	)
Increase in accrued expenses and other current liabilities		(1,632	)		28,104			14,282
Increase (decrease) in income taxes payable		11,811			(694	)		10,193
Increase in deferred revenue		19,735			1,663			7,355
Net cash flows provided by operating activities		163,648			114,766			121,681
Cash flows from investing activities:
Net cash paid for acquisitions		(16,135	)		(40,541	)		(14,094	)
Purchases of property, plant and equipment		(12,944	)		(11,279	)		(10,740	)
Internally developed software		(1,919	)		(1,974	)		(3,523	)
Purchases of other intangible assets		—			—			(575	)
Disposal of property, plant and equipment		227			398			112
Purchases of short-term investments		(610,650	)		(122,400	)		—
Proceeds from sales of short-term investments		628,150			35,450			—
Purchases of other investments		—			(838	)		(500	)
Net cash flows used in investing activities		(13,271	)		(141,184	)		(29,320	)
Cash flows from financing activities:
Repurchases of common stock		(74,303	)		(17,870	)		(40,234	)
Proceeds from stock option exercises		27,884			34,966			18,532
Realized tax benefits from stock option exercises		11,018			16,781			13,305
Principal payments on line of credit		(1,640	)		(3,717	)		(628	)
Proceeds from lines of credit		—			1,650			318
Other		(422	)		(664	)		(322	)
Net cash flows (used in) provided by financing activities		(37,463	)		31,146			(9,029	)
Effect of exchange rate changes on cash and cash equivalents		26,348			752			369
Net increase in cash and cash equivalents		139,262			5,480			83,701
Cash and cash equivalents at beginning of year		242,702			237,222			153,521
Cash and cash equivalents at end of year	$	381,964		$	242,702		$	237,222
Supplemental disclosures of cash flow information:
Cash paid (received) during the fiscal year for:
Interest	$	137		$	89		$	213
Income taxes (net refund)	$	28,752		$	24,561		$	(971	)

The accompanying notes are an integral part of the consolidated financial statements.

MICROS SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME

	Common Stock						Capital in Excess			Retained			Accumulated Other Comprehensive
(in thousands)	Shares ⁽¹⁾			Amount			of Par			Earnings			Income			Total
Balance, June 30, 2005		77,290		$	482		$	99,990		$	239,320		$	5,379		$	345,171
Comprehensive income:
Net income		—			—			—			63,528			—			63,528
Foreign currency translation adjustments		—			—			—			—			7,679			7,679
Total comprehensive income																	71,207
Share-based compensation		—			—			9,135			—			—			9,135
Stock issued upon exercise of options		2,512			16			18,516			—			—			18,532
Repurchases of stock		(1,842	)		(11	)		(40,223	)		—			—			(40,234	)
Income tax benefit from options exercised		—			—			13,305			—			—			13,305
Balance, June 30, 2006		77,960			487			100,723			302,848			13,058			417,116
Comprehensive income:
Net income		—			—			—			79,988			—			79,988
Foreign currency translation adjustments		—			—			—			—			11,623			11,623
Total comprehensive income																	91,611
Cumulative effect of change in accounting principle, net of tax		—			—			—			—			(5,929	)		(5,929	)
Minority interest put arrangement		—			—			—			(51	)		—			(51	)
Share-based compensation		—			—			13,996			—			—			13,996
Stock issued upon exercise of options		3,834			24			34,942			—			—			34,966
Repurchases of stock		(698	)		(4	)		(17,866	)		—			—			(17,870	)
Income tax benefit from options exercised		—			—			17,294			—			—			17,294
Balance, June 30, 2007, as previously reported		81,096			507			149,089			382,785			18,752			551,133
Cumulative impact of the adoption of FIN 48		—			—			—			(2,647	)		—			(2,647	)
Balance, June 30, 2007, adjusted		81,096			507			149,089			380,138			18,752			548,486
Comprehensive income:
Net income		—			—			—			101,284			—			101,284
Foreign currency translation adjustments		—			—			—			—			38,186			38,186
Unrealized loss on non-current investments, net of tax		—			—			—			—			(2,651	)		(2,651	)
Amortization of prior year pension costs, net of tax		—			—			—			—			648			648
Total comprehensive income																	137,467
SERP amendment, net of tax		—			—			—			—			5,281			5,281
Minority interest put arrangement		—			—			—			(645	)		—			(645	)
Share-based compensation		—			—			17,229			—			—			17,229
Stock issued upon exercise of options		2,131			13			27,871			—			—			27,884
Repurchases of stock		(2,329	)		(14	)		(74,289	)		—			—			(74,303	)
Income tax benefit from options exercised		—			—			11,617			—			—			11,617
Balance, June 30, 2008		80,898		$	506		$	131,517		$	480,777		$	60,216		$	673,016

⁽¹⁾All share data has been retroactively adjusted for a two-for-one stock split effective February 5, 2008.

The accompanying notes are an integral part of the consolidated financial statements.

MICROS SYSTEMS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.	DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

DESCRIPTION OF BUSINESS

MICROS Systems, Inc. is a leading worldwide designer, manufacturer, marketer and servicer of enterprise information solutions for the global hospitality and specialty retail industries. The information solutions consist of application specific software and hardware systems, supplemented by a wide range of services. The hospitality industry includes numerous defined markets such as lodging (including individual hotel sites, hotel central reservation systems and customer information systems), table service restaurants, quick service restaurants, entertainment venues such as stadiums and arenas, business foodservice operations, casinos, transportation foodservice, government operations, and cruise ships. The specialty retail industry consists of retail operations selling to consumers both general and specific products, such as clothing, shoes, food, hardware, jewelry, and other specialty items. (References to “MICROS” or the “Company” herein include the operations of MICROS Systems, Inc. and its subsidiaries on a consolidated basis.)

BASIS OF PREPARATION AND USE OF ESTIMATES

The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and accompanying notes. Although these estimates are based on assumptions that management believes are reasonable and management’s knowledge of current events and actions that the Company may undertake in the future, actual results may differ from these estimates.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. The net income of the Company’s subsidiaries is recorded net of minority interests. Investments in 20% through 50% owned affiliated companies and any investments in other companies in which the Company exercises significant influence over operating and financial affairs, are accounted for under the equity method. Otherwise, investments are recorded at cost. All significant intercompany accounts and transactions have been eliminated.

STOCK SPLIT

On February 5, 2008, the Company effected a two-for-one stock split of the Company’s common stock, in the form of a stock dividend. All references to share data in the accompanying consolidated financial statements and throughout these notes have been retroactively adjusted to reflect the two-for-one stock split.

FOREIGN CURRENCY TRANSLATION

The financial statements of the Company’s non-U.S. operations are translated into U.S. dollars for financial reporting purposes. The assets and liabilities of non-U.S. operations whose functional currencies are not in U.S. dollars are translated at the fiscal year-end exchange rates, while revenues and expenses are translated at month end exchange rates during the fiscal year which approximate weighted average exchange rates. Specifically, the applicable exchange rates used in the financial statements are based on the exchange rate(s) in effect on the last business day of each month as reported in the Wall Street Journal. The cumulative translation effects are reflected as a component of the Company’s accumulated other comprehensive income within shareholders’ equity. Gains and losses on monetary transactions denominated in other than the functional currency of an operation are reflected in other income (expense).

REVENUE RECOGNITION

Revenue is generated from software licenses, hardware and service and support. Revenue is recognized in accordance with American Institute of Certified Public Accountants Statement of Position (“SOP”) 97-2, “Software Revenue Recognition,” as modified by SOP 98-9, “Modification of SOP 97-2, Software Revenue Recognition with Respect to Certain Transactions” and the Securities and Exchange Commission Staff Accounting Bulletin No. 104, “Revenue Recognition in Financial Statements (“SAB NO. 104”).” Revenue under multiple-element arrangements, which typically include hardware, software licenses, and maintenance agreements sold together, are allocated to each element in the arrangement using the residual method prescribed by SOP 98-9, based on vendor specific objective evidence of the fair value of any undelivered elements of the arrangement, i.e., recognition of an allocated portion of revenue, equivalent to the fair value of undelivered elements, is deferred.

Revenue from software license, hardware and service and support are generally recognized when the four basic criteria of SOP 97-2 are met as follows:

·	Persuasive evidence of an arrangement exists: The Company requires a contract signed by both parties to the agreement or a purchase order received from the customer as persuasive evidence of an arrangement.

Delivery has occurred or services have been rendered: Delivery occurs at FOB shipping point when provided to a common carrier, if the risk of ownership has passed to the buyer or in the case of electronic delivery, delivery occurs when the customer is given access to the licensed programs. If the risk of ownership has not passed to the buyer when provided to the common carrier, delivery occurs when the risk has passed to the buyer.

Fixed or determinable fee: The Company considers the license fee to be fixed or determinable if the fee is not subject to refund or adjustment and is payable within twelve months of delivery with generally no more than 20% of the contract price due at the end of the payment term. If the arrangement fee is not fixed or determinable, the Company recognizes the revenue as amounts become due and payable. The Company considers service fees to be fixed or determinable if the services fee or rates for time and material contracts are not subject to refund or adjustment.

Collection is probable: The Company performs credit review for significant transactions at the time the arrangement is executed to determine the creditworthiness of the customer. Collection is deemed probable if the Company expects that the customer will be able to pay amounts under the arrangement as they become due. If the Company determines from the outset of an arrangement that collection is not probable, revenue is recognized as collection occurs.

Costs related to shipping and handling and billable travel expenses are included in cost of sales. The Company reduces revenue to reflect estimated customer returns and allowances.

Hardware

The Company’s main proprietary hardware is point-of-sale terminals. The Company also sells other hardware devices, such as printers, cash drawers, handheld order entry terminals and pole displays. The Company also resells various hardware products, including personal computers, servers, printers, network cards and other related computer equipment.

Hardware revenue is recognized, in accordance with SAB No. 104. Hardware revenue is recognized at FOB shipping point when the hardware is provided to a common carrier if at the time of shipment, the Company has an arrangement, the risk of ownership has passed to the buyer, there is a fixed and determinable price and collectability is reasonably assured. If at the time of shipment, the Company has not met these four criteria, recognition of the hardware revenue is deferred until all four criteria are determined to have been met.

Hardware revenue is outside the scope of SOP 97-2 because any system software embedded in the hardware is used solely in connection with the operation of the hardware and is incidental to the hardware product as a whole; once installed, the embedded system software is not updated for new versions that are subsequently developed.

Software

The Company’s proprietary software consists of hotel software systems, restaurant software systems and retail software systems. The Company also resells various third party software products. All software products are sold on a stand alone basis and can be used with third party hardware products and do not require the Company’s hardware products.

Revenue related to all software products, whether sold stand alone or with the Company’s hardware products, is recognized in accordance with SOP 97-2. If the software license agreement contains customer acceptance criteria or a cancellation right, recognition of the software revenue is deferred until the earlier of customer acceptance or the expiration of the acceptance period or cancellation right. If a third party can install the software, revenue is recognized when shipped, with an appropriate deferral for any undelivered software contract elements. For OPERA software, the Company is the principal party that has the proprietary knowledge to install the software. The Company deems OPERA software to be delivered when ready to go live, thus software and related installation services revenue is recognized upon installation and when ready to go live, with an appropriate deferral for any undelivered software contract elements. Fees are allocated to the various elements of software license agreements using the residual method prescribed by SOP 98-9, based on vendor specific objective evidence (“VSOE”) of the fair value of any undelivered elements of the arrangement. VSOE of fair value for the Company’s services, including maintenance agreements, are based upon separate sales of those arrangements, which are consistently applied. Under the residual method, the Company defers revenue for the fair value of its undelivered elements based on VSOE of fair value, and the remaining portion of the arrangement fee is allocated to the delivered elements and recognized as revenue when the basic criteria in SOP 97-2 are met.

Typically, payments for software licenses are due within twelve months of the agreement date. When software license agreements call for escalating payment terms, or payment terms of twelve months or more from the delivery date, software revenue is recognized as payments become due and only if all other conditions for revenue recognition have been satisfied.

Service

The Company provides maintenance support, installation, customer specific development and, more recently, software-hosting services. Maintenance support and software-hosting services are initially recorded as deferred revenue and are recognized ratably over the contract term. Revenue related to installation services, which include project management, systems planning, design and implementation, customer configurations, training and assistance activating the Company’s products are recognized as the service is rendered.

The Company’s software is ready for use by the customer upon receipt. While many of the customers may choose to tailor the software to fit their specific needs or request the Company’s assistance activating the programs, the Company’s implementation services do not typically involve significant customization to or development of the underlying source code.

When the Company provides services deemed to be essential to the functionality of the software products licensed, or when a customer requires significant production, modification, or customization to the licensed software, the Company recognizes software and services revenue under the completed contract method in accordance with SOP 81-1, “Accounting for Performance of Construction Type and Certain Production Type Contracts.” Once acceptance occurs, revenue is recognized for all delivered elements based on vendor specific objective evidence, and maintenance service revenue is deferred and recognized ratably over the contract term. The completed contract method of accounting is followed rather than the percentage of completion method as the production cycles are usually not long term (less than one year).

CASH EQUIVALENTS

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company's cash equivalents are recorded at cost, which approximates fair value, and consist primarily of high-grade commercial paper, money market funds, U.S. government agency securities and tax-exempt notes and bonds.

ALLOWANCE FOR DOUBTFUL ACCOUNTS

The Company maintains allowances for doubtful accounts for estimated losses that may result from the inability of the Company’s customers to make required payments and for limited circumstances when the customer disputes the amounts due to the Company. The Company’s methodology for determining this allowance requires estimates and is based on the age of the receivable, customer’s payment practices and history, inquiries, credit reports from third parties and other financial information. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. As of June 30, 2008 and 2007, accounts receivable totaled approximately $192.4 million and $180.2 million, net of an allowance for doubtful accounts of approximately $28.3 million and $23.1 million, respectively. Additionally, bad debt expenses, net of recoveries, for the fiscal years 2008, 2007 and 2006 were approximately $7.1 million, $3.4 million and $5.4 million, respectively.

INVENTORY

Inventory is stated at the lower of standard cost which approximates cost, or market. Standard cost is determined principally by the first-in, first-out basis, or market. The Company maintains a reserve for obsolescence for inventory in the amount of approximately $11.5 million and $9.9 million as of June 30, 2008 and June 30, 2007.

INVESTMENTS, NON-CURRENT AND SHORT-TERM

The Company’s investments in auction rate securities, which are debt instruments with long-term scheduled maturities and periodic interest rate reset dates, are classified as available-for-sale. The Company carries these securities at estimated fair value with any related impairment being classified as either temporary and reported as a separate component of stockholders' equity or as other-than-temporary and recognized in its consolidated statements of operations.

As of June 30, 2008, the Company held approximately $65.2 million in auction rate securities, classified as investment, non-current available for sale in the accompanying consolidated balance sheets compared to approximately $87.0 million, classified as short-term investments available for sale as of June 30, 2007. As of June 30, 2008, there were temporary unrealized losses of approximately $4.2 million (approximately $2.7 million, net of tax). As of June 30, 2007, there were no unrealized gains or losses on these investments. The Company recognized no gains or losses related to the sale of its investments in auction rate securities during the three fiscal years ended June 30, 2008. See Note 2, “Investments, non-current and short-term” for further detail.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives, ranging from three to ten years. Leasehold improvements are amortized over the life of the lease or estimated useful lives, whichever is shorter. Maintenance and repairs are charged to expense as incurred, and the costs of additions and improvements are capitalized. Any gain or loss from the retirement or sale of an asset is credited or charged to operations in the current period.

SOFTWARE FOR INTERNAL USE

Internally used computer software is capitalized according to SOP 98-1, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use.” Capitalized costs are amortized on a straight-line basis over the estimated life of the software ranging up to seven years.

CAPITALIZED SOFTWARE DEVELOPMENT COSTS

Costs incurred in the research and development of new software products to be licensed to others, costs primarily consisting of salaries, employee benefits and administrative costs, are expensed as incurred and included in research and development expenses until technological feasibility is established. The capitalization of software development costs on a product-by-product basis starts when a product’s technological feasibility has been established and ends when the product is available for general release to customers, at which time amortization begins. Technological feasibility is reached when the product reaches the working model stage. The cost of purchased software is also capitalized.

Annual amortization of capitalized software development costs are charged to software cost of sales and for each capitalized software product is the greater of: (i) the amount computed using the ratio that of the software product’s current fiscal year gross revenue to the total current fiscal year and anticipated future gross revenues for that product or (ii) the amount computed based on straight-line method over the remaining estimated economic life of the product. Amortization expenses for the fiscal years 2008, 2007 and 2006 were approximately $9.4 million, $8.4 million and $7.0 million, respectively. Additionally, during the fiscal years 2008 and 2006, the Company wrote off approximately $0.7 million and approximately $1.6 million in capitalized software costs related to products for which no future revenue was projected. No capitalized software was written off in fiscal year 2007.

LONG-LIVED ASSETS INCLUDING FINITE-LIVED PURCHASED INTANGIBLE ASSETS

The Company evaluates long-lived assets, including finite-lived purchased intangible assets, for impairment whenever events and changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” The Company compares the fair value of the assets based on the undiscounted cash flows the assets are expected to generate (or market value, if available) to the book value of the assets. If the fair value is less than book value, the asset is impaired and an impairment loss would be recognized by the Company equal to the excess of book value over fair value.

During the last three fiscal years ended June 30, 2008, the Company did not recognize any impairment losses on long-lived assets, including finite-lived purchased intangible assets.

GOODWILL AND INDEFINITE-LIVED PURCHASED INTANGIBLE ASSETS

SFAS No. 142, “Goodwill and Other Intangible Assets” prohibits the amortization of goodwill and indefinite-lived purchased intangible assets. The Company assesses whether goodwill and the Company’s only indefinite-lived purchased intangible assets, trademarks, are impaired on an annual basis in accordance with SFAS 142 during the first quarter of its fiscal year. Goodwill is evaluated for impairment by comparing the fair value of each of the Company’s reporting units (the Company’s four operating segments consisting of U.S., Europe, the Pacific Rim and Latin America) to its book value. The fair value of each reporting unit is determined based on a weighting of the income approach (i.e., discounted future income associated with the item) and market approach (i.e., market value of similar assets purchased or sold in the same industry) to value. If the fair value of the reporting unit exceeds the book value of the net assets assigned to that unit, goodwill is not impaired. If goodwill is impaired, the Company recognizes an impairment loss based on the amount by which the book value of goodwill exceeds its implied fair value. The implied fair value of goodwill is determined by deducting the fair value of a reporting unit’s identifiable assets and liabilities from the fair value of the reporting unit as a whole, as if that reporting unit had just been acquired and the purchase price were being initially allocated.

Trademarks are evaluated for impairment by comparing their fair value to book value. The Company estimates the fair value of trademarks using an income approach to value, and recognizes an impairment loss if the estimated fair value of a trademark is less than its book value.

Additional impairment assessments may be performed on an interim basis if the Company encounters events or changes in circumstances indicating that it is more likely than not that the book value of goodwill and/or trademarks has been impaired.

The process of evaluating the potential impairment of goodwill and/or trademarks is highly subjective and requires significant judgment at many points during the analysis. In estimating the fair value of the reporting units with recognized goodwill for the purposes of its annual or interim analyses, the Company makes estimates and judgments about the future cash flows of these businesses. The cash flow forecasts are based on assumptions that are consistent with the plans and estimates used to manage the underlying reporting units. The Company also considers its market capitalization on the date the analysis is performed.

ADVERTISING COSTS

Advertising costs are charged to expense as incurred. Advertising expenses for the fiscal years 2008, 2007 and 2006 were approximately $7.5 million, $6.6 million and $4.9 million, respectively.

RESEARCH AND DEVELOPMENT COSTS

Research and development costs, primarily consisting of salaries, employee benefits and administrative costs, not capitalized as Capitalized Software Development Costs are charged to operations as incurred. Research and development costs for the fiscal years 30, 2008, 2007 and 2006 were approximately $40.1 million, $33.9 million and $27.1 million, respectively.

SHARE-BASED COMPENSATION

The Company accounts for its option awards granted under its stock option program in accordance with SFAS No. 123(R), “Share-Based Payment.” The estimated fair value of option awards is measured as of the date of grant, and non-cash share-based compensation expense adjusted for expected pre-vesting forfeitures are recognized ratably over the requisite service (i.e. vesting) period of options in the consolidated statement of operations. In addition, non-cash share-based compensation expense adjusted for expected pre-vesting forfeitures is recognized for the non-vested portion of awards that were granted before the effective date of SFAS 123(R) as those options become incrementally vested.

As the Company values stock options using the Black-Scholes option pricing model, which was developed for use in estimating the fair value of traded options that are fully transferable and have no vesting restrictions, the Company is required to input highly subjective assumptions about volatility rates, expected term of options, dividend yields and applicable interest rates in the option pricing model. Expected volatility is based on historical stock prices. The expected term of options granted is based on historical option activities, adjusted for the remaining option life cycle by assuming ratable exercise of any unexercised vested options over the remaining term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. See Note 3, “Share-Based Compensation” below for further detail.

WARRANTIES

The Company’s products are under warranty for defects in material and workmanship for a period ranging from 12 to 36 months. The Company establishes an accrual for estimated warranty costs at the time of sale and historically, the Company’s warranty expense has not been material.

INCOME TAXES

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on the deferred tax assets and liabilities of a change in tax rate is recognized in the results of operations in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. If the Company determines that it will not be able to realize all or part of its net deferred tax asset in the future, an adjustment to the deferred tax asset would be charged to the deferred income tax provision in the period such determination is made.

Effective July 1, 2007, the Company adopted the provisions of FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. FIN 48 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. See Note 14, “Income Taxes” below for further detail.

NET INCOME PER SHARE

Basic net income per common share is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding. Diluted net income per share includes the dilutive effect of stock options. A reconciliation of the net income available to common shareholders and the weighted-average number of common shares outstanding assuming dilution is as follows:

	Fiscal Year Ended June 30,
(in thousands, except per share data)	2008			2007			2006
Net income	$	101,284		$	79,988		$	63,528
Effect of minority put arrangement		(645	)		(51	)		—
Net income available to common shareholders	$	100,639		$	79,937		$	63,528

Average common shares outstanding		81,546			79,978			77,383
Dilutive effect of outstanding stock options		1,800			2,603			3,865
Average common shares outstanding assuming dilution		83,346			82,581			81,248

Basic net income per share	$	1.23		$	1.00		$	0.82
Diluted net income per share	$	1.21		$	0.97		$	0.78

Anti-dilutive weighted shares excluded from reconciliation		1,239			2,528			1,092

Fiscal years 2008, 2007 and 2006 include approximately $17.2 million ($13.1 million, net of tax), $14.0 million ($11.1 million, net of tax) and $9.1 million ($7.1 million, net of tax), in non-cash share-based compensation expense, respectively. These non-cash share-based compensation expenses reduced diluted net income per share by $0.16, $0.14 and $0.09 for fiscal years 2008, 2007 and 2006, respectively. See Note 3, “Share-based Compensation” below for further detail.

In connection with one of the Company’s acquisitions during fiscal year 2007, the minority shareholders of the acquired company had the option to require the Company to purchase their shares in accordance with a pre-defined formula based on specified financial results of the acquired company. This arrangement reduced the net income available to common shareholders in the earnings per share calculation by less than $0.01 per diluted share for fiscal years 2008 and 2007. See Note 4, “Acquisitions” below for further detail.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts of the Company’s financial instruments reflected in the consolidated balance sheets approximate their fair values.

DEFINED BENEFIT PLAN

The Company’s Supplemental Executive Retirement Plan (the “SERP Plan”) provides designated officers and executives of the Company with benefits upon retirement or immediate vesting of benefits upon a participant’s pre-retirement death. The SERP Plan is accounted for in accordance with SFAS No. 87, “Employers Accounting for Pensions.”

In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements 87, 88, 106 and 132(R)” (“SFAS 158”). SFAS 158 requires the Company to recognize the funded status (the difference between the fair value of plan assets and the projected benefit obligations) of the SERP Plan in the Company’s statement of financial position, with a corresponding adjustment to accumulated other comprehensive income, net of tax, to measure the fair value of plan benefit obligations as of its fiscal year ending June 30, 2007 and to provide additional disclosures. The Company adopted the recognition and disclosure provisions of SFAS 158 on June 30, 2007, and included the effect of adoption in the accompanying consolidated financial statements. This plan is described more fully in Note 17, “Employee Benefit Plans.”

RECENT ACCOUNTING STANDARDS

FSP 142-3

In April 2008, the FASB issued FASB Staff Position (“FSP”) FAS 142-3, “Determination of the Useful Life of Intangible Assets”, which amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, “Goodwill and Other Intangible Assets” (“SFAS 142”). The intent of this FSP is to improve the consistency between the useful life of a recognized intangible asset under SFAS 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141(R), “Business Combinations”, and other GAAP. This FSP is effective for fiscal years beginning after December 15, 2008 (the Company’s fiscal year 2010), and interim periods within those fiscal years. The Company is currently reviewing the impact of the adoption of FSP FAS 142-3 on its consolidated financial position, results of operations and cash flows.

SFAS 161

In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133,” which requires additional disclosures about the objectives of the derivative instruments and hedging activities, the method of accounting for such instruments under SFAS 133 and its related interpretations, and a tabular disclosure of the effects of such instruments and related hedged items on our financial position, financial performance, and cash flows. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008 (the Company’s fiscal year 2010). Historically the Company has not had material hedging transactions, thus the Company believes the impact of the adoption of SFAS 161 on its consolidated financial position, results of operations and cash flows will not be material. The ultimate impact of the adoption of SFAS 161 is undeterminable at this time as it will depend on the Company’s hedging transactions, if any, in effect at the time of the adoption.

SFAS 141(R)

In December 2007, the FASB issued SFAS No. 141 (Revised), “Business Combinations” (“SFAS 141(R)”), which establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired business. SFAS 141(R) also provides guidance for recognizing and measuring the goodwill acquired in the business combination and disclosing information to enable users of the financial statements to evaluate the nature and financial effects of the business combination. SFAS 141(R) is effective for business combinations for which the acquisition dates are on or after the beginning of the first annual reporting period beginning on or after December 15, 2008 (the Company’s fiscal year 2010). The Company is currently reviewing the impact of the adoption of SFAS 141(R) on the Company’s consolidated financial position, results of operations and cash flows.

SFAS 160

In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements — an Amendment of ARB 51”, (“SFAS 160”). This statement amends Accounting Research Bulletin No. 51 to establish accounting and reporting standards for the noncontrolling interest (minority interest) in a subsidiary and for the deconsolidation of a subsidiary. SFAS 160 establishes accounting and reporting standards that require noncontrolling interests to be reported as a component of equity, changes in a parent’s ownership interest while the parent retains its controlling interest be accounted for as equity transactions, and any retained noncontrolling equity investment upon the deconsolidation of a subsidiary initially be measured at fair value. SFAS 160 is effective for business combinations for which the acquisition dates are on or after the beginning of the first annual reporting period beginning on or after December 15, 2008 (the Company’s fiscal year 2010). The Company is currently reviewing the impact of the adoption of SFAS 160 on the Company’s consolidated financial position, results of operations and cash flows.

SFAS No. 159

In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“SFAS 159”), which allows entities to choose to measure eligible financial instruments at fair value as of specified dates. The election, which may be applied on an instrument by instrument basis, is typically irrevocable once elected. SFAS 159 is effective for fiscal years beginning after November 15, 2007 (the Company’s fiscal year 2009). The Company does not believe the adoption of SFAS 159 will have a material impact on the Company’s consolidated financial position, results of operations and cash flows.

SFAS No. 157

In September 2006, the FASB issued SFAS No. 157 “Fair Value Measurements” (“SFAS 157”) to establish a framework for measuring fair value under generally accepted accounting principles and to expand disclosures on fair value measurements. The statement applies to previously established valuation pronouncements, but is to be applied prospectively, so that it does not require the changing of any previous fair value measurements. Under SFAS 157, fair value is established by the price that would be received to sell the item or the amount to be paid to transfer the liability or the asset (an exit price), as opposed to the price to be paid for the asset or received to assume the liability (an entry price). SFAS 157 is effective for all assets valued in financial statements for fiscal years beginning after November 15, 2007 (the Company’s fiscal year 2009). In February 2008, the FASB issued FASB Staff Position FAS 157-2, “Effective Date of FASB Statement No. 157” which permits a one-year deferral for the implementation of the provisions of SFAS 157 with regard to non-financial assets and liabilities that are not carried at fair value on a recurring basis in financial statements. SFAS 157 may cause some valuation procedures used by the Company to change after its adoption. However, the Company does not believe the adoption of the SFAS 157 will have a material impact on the Company’s consolidated financial position, results of operations and cash flows.

2.	INVESTMENTS, NON-CURRENT AND SHORT-TERM

The Company’s investments in auction rate securities are carried at estimated fair value. Auction rate securities are long-term debt instruments with variable interest rates that periodically reset to prevailing market rates every 7 to 35 days through the auction process (“auction rate securities”). The auction rate securities held by the Company are supported by student loans for which repayment is guaranteed either by the Federal Family Education Loan Program or insured by AMBAC Financial Group. Due to the liquidity previously provided by the interest rate reset mechanism and the short-term nature of the Company’s investment, the auction rate securities previously were classified as short-term investments available-for-sale in the accompanying consolidated balance sheets. Beginning in February 2008, auctions for these securities failed to obtain sufficient bids to establish a clearing rate and the securities were not saleable in the auction, thereby no longer providing short-term liquidity. As a result, the auction rate securities have been classified as non-current investments available-for-sale as of June 30, 2008 instead of being classified as short-term investments, as was the case as of June 30, 2007.

In the absence of a liquid market or a negotiated sales transaction, the Company engaged an independent valuation firm to provide a valuation for its auction rate securities as of June 30, 2008. The valuation firm used a mark to model approach to arrive at this valuation, which was reviewed and agreed to by the Company. The assumptions used in preparing the valuation analysis include estimates for interest rates, timing and amount of cash flows, credit and liquidity premiums, and expected holding periods of the auction rate securities. These assumptions are subject to change as the underlying market conditions change. The assumptions used represent the Company’s estimates based on available data as of June 30, 2008.

The valuation of the auction rate securities as of June 30, 2008 indicated a fair value of approximately $65.2 million for which the Company has recorded a temporary unrealized impairment loss of approximately $4.2 million (approximately $2.7 million, net of tax). The Company reviews impairments in accordance with Emerging Issues Task Force 03-1 and FSP FAS 115-1 and FAS 124-1, “The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments” to determine the classification of the impairment as temporary or other-than-temporary. A temporary impairment charge results in an unrealized loss being recorded in the other comprehensive income component of stockholders' equity. Such an unrealized loss does not reduce net income for the applicable accounting period because the loss is viewed as temporary. Unrealized losses are recognized in the statement of operations when a decline in fair value is determined to be other-than-temporary. Determination of whether the impairment is temporary or other-than-temporary requires significant judgment. The primary factors that are considered in classifying the impairment include the extent and time the fair value of each investment has been below cost, the expected holding or recovery period for each investment, and the Company’s intent and ability to hold each investment until recovery.

The Company has recorded a temporary unrealized loss of approximately $4.2 million (approximately $2.7 million, net of tax) on these investments in the other comprehensive income component of stockholders’ equity during the fiscal year 2008. As of June 30, 2007, there were no unrealized gains or losses on these investments. The Company recognized no gains or losses related to the sale of its investments in auction rate securities during the three fiscal years ended June 30, 2008. The Company reviews its investments on an ongoing basis for indications of possible impairment and proper classification of any impairment once identified and will continue to monitor the liquidity and creditworthiness of its auction rate securities holdings.

3.	SHARE-BASED COMPENSATION:

The Company has granted incentive and non-qualified stock options to directors, officers, and other employees pursuant to authorization by the Board of Directors. With respect to directors, the Company’s policy and practice during fiscal year 2008 was that only those directors who are also either employees of or consultants to the Company were eligible to receive options. The exercise price per share of each option equals the market value of a share of the Company’s common stock on the date of the grant. Substantially all of the options granted are exercisable pursuant to a three-year vesting schedule whereby one-third of the options vest upon the first anniversary of the grant, the second third of the options vest upon the second anniversary of the grant, and the final third of the options vest upon the third anniversary of the grant. All outstanding options expire ten years from the date of grant. Since its inception in 1991, the Company has authorized approximately 34.0 million shares for issuance upon exercise of options, of which approximately 3.1 million shares were available for future grants as of June 30, 2008. Options to purchase approximately 6.2 million shares were outstanding as of June 30, 2008, including currently exercisable options to purchase approximately 3.7 million shares.

The non-cash share-based compensation expenses included in the consolidated statements of operations are as follows:

	Fiscal Year Ended June 30,
(in thousands)	2008			2007			2006
Cost of sales	$	—		$	—		$	35
Selling, general and administrative		16,213			13,243			8,851
Research and development		1,016			753			249
Total non-cash share-based compensation expense		17,229			13,996			9,135
Income tax benefit		(4,083	)		(2,884	)		(2,026	)
Total non-cash share-based compensation expense, net of tax benefit	$	13,146		$	11,112		$	7,109

Impact on diluted net income per share	$	0.16		$	0.14		$	0.09

The non-cash share-based compensation expense for the fiscal year 2008 includes approximately $3.2 million related to a grant of options to the Company’s Chairman, President, and Chief Executive Officer, A.L. Giannopoulos during fiscal year 2008. In accordance with the terms of the Company’s option plan, any options that he holds that have not yet vested will vest immediately upon his retirement, as he is over the retirement age of 62. Although Mr. Giannopoulos has not retired, the Company expensed 100% of the share-based compensation expense related to his option grant because he was over the age of 62 at the time he received the options. The non-cash share-based compensation expense for the fiscal year 2007 also included a one-time charge of approximately $0.7 million resulting from the accelerated vesting of unvested options due to the death of an officer of the Company. Under the Company’s stock option plan, options vest immediately upon death of an option holder.

No non-cash share-based compensation expense has been capitalized for fiscal years 2008 and 2007, as stock options were not granted to employees whose labor was capitalized as software development costs or inventory. For fiscal year 2006, less than $0.1 million in non-cash share-based compensation expense had been capitalized as a result of stock options granted to employees whose labor was capitalized as software development costs.

The estimated fair values of options granted during the three fiscal years ended June 30, 2008 were estimated on the date of grant using the following assumptions:

	Fiscal Year Ended June 30,
	2008			2007			2006
Weighted-average expected volatility		35	%		37	%		41	%
Expected volatility		33% - 36	%		36% - 38	%		33% - 46	%
Expected term		4.8 – 5.3 years			4.6 – 5.7 years			4.0 – 5.7 years
Expected dividend yield		0	%		0	%		0	%
Risk-free interest rate		2.6% - 3.7	%		4.5% - 4.9	%		3.9% - 5.0	%

The following is a summary of option activity:

(in thousands, except per share data and number of years)	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 30, 2007		7,120		$	17.17		6.7	$	71,432
Granted		1,491		$	34.73
Exercised		(2,132	)	$	13.07
Forfeited or expired		(232	)	$	25.14
Outstanding at June 30, 2008		6,247		$	22.46		7.2	$	50,192

Exercisable at June 30, 2007		4,236		$	12.78		5.4	$	61,075
Exercisable at June 30, 2008		3,655		$	17.41		6.1	$	47,802

The weighted-average grant-date estimated fair value per share of options granted during the fiscal years 2008, 2007 and 2006 were $12.87, $21.66 and $20.02, respectively. The total intrinsic value, the difference between the exercise price and the market price on the date of exercise, of options exercised during the fiscal years 2008, 2007 and 2006 were approximately $38.9 million, $62.2 million and $37.5 million, respectively.

As of June 30, 2008, there was approximately $19.7 million (net of estimated forfeiture) in non-cash share-based compensation costs related to non-vested awards, expected to be recognized in the Company’s consolidated statements of operations. This cost is expected to be recognized over a weighted-average period of 1.85 years.

Cash received from options exercised during the fiscal years 2008, 2007 and 2006 were approximately $27.9 million, $35.0 million and $18.5 million, respectively.

4.	ACQUISITIONS:

FY 2008:

CHECK-IN-DATA AG

During the first quarter of fiscal year 2008, the Company acquired Check-in Data AG (“Check in Data”) for an aggregate cash purchase price of approximately $13.5 million, net of $3.6 million in cash acquired, in a step acquisition in which the Company acquired an 80% interest in July 2007 and the remaining 20% interest in September 2007. Approximately $2.0 million of the total purchase price was held back to satisfy certain claims the Company may have against Check in Data. Any amounts remaining after satisfaction of any claims will be paid in two installments, at 12 months and 18 months after the July 2007 closing. Subsequent to June 30, 2008, the first installment, net of working capital adjustment, of approximately $0.8 million was paid in July 2008. Headquartered in Switzerland, Check in Data was a distributor of MICROS products and services and also provided complementary products and services. Goodwill of approximately $11.9 million and intangible assets and capitalized software of approximately $3.3 million were recorded in connection with the acquisition. The purchase price allocation is not finalized and is subject to the final working capital adjustments, which are currently not expected to be material. The acquisition of Check in Data has been included in the results of the Company since the acquisition date.

OTHER:

During fiscal year 2008, the Company also acquired another distributor of MICROS products and services. The aggregate cash purchase price for this acquisition was approximately $4.3 million, net of cash acquired, which excluded certain amounts that were held back to be released on either an agreed upon date or upon the resolution of contractual indemnity obligations of the sellers.

The pro forma effect of these acquisitions was not material to the consolidated financial position and results of operations presented herein.

FY 2007:

REDSKY

On January 29, 2007, the Company acquired the RedSky IT Hospitality, Travel, and Retail subsidiaries (together “RedSky”) of RedSky IT for a total cash purchase price of approximately $30.8 million, net of cash acquired. A portion of the purchase price previously held in escrow to provide payment if the Company made and prevailed with respect to certain claims against RedSky IT have been released to the former shareholders of RedSky IT. Headquartered in the United Kingdom, the acquired companies provide hotel property management software solutions targeted toward the limited-service, independent and economy hotel markets, and software solutions for the grocery and travel industry. Goodwill of approximately $33.2 million, intangible assets of approximately $5.2 million and capitalized software costs of approximately $2.7 million were recorded in connection with the acquisition.

OTHERS:

During fiscal year 2007, the Company also acquired various distributors of MICROS products and services and other companies with complementary products and services. The aggregate cash purchase price for these acquisitions was approximately $12.6 million, net of $3.2 million in cash acquired, which excluded certain amounts that were held back to be released on either an agreed upon date or, if applicable, upon the resolution of contractual indemnity obligations of the sellers, all of which have been released to the sellers.

Additionally, in connection with one of the acquisitions, the minority interest holders were provided a Put Option based on a formula related to certain financial results of the acquired company. The Company had accounted for this arrangement under Emerging Issues Task Force (“EITF”) Abstract Topic No. D-98 (“D-98”), as redemption is outside of the control of the Company. Under EITF D-98, the carrying value of minority interest reflected on the accompanying consolidated balance sheets (“Initial Minority Interest”) was increased by an amount equal to the excess of the value of the Put Option over the Initial Minority Interest, with an offset to retained earnings and a similar reduction to the net income available to common shareholders in the earnings per share calculation. As permitted in EITF D-98, the Company adopted an accretion method which allowed the Company to accrete the Put Option value over the period from the date of acquisition to the Put Option’s earliest possible redemption date. As a result, as of June 30, 2008 and 2007, the Company reflected only a pro-rata portion of the Put Option’s value and increase in the Initial Minority Interest, with corresponding reductions to retained earnings and made similar reductions to the net income available to common shareholders in the earnings per share calculation. This arrangement negatively impacted diluted earnings per share by less than $0.01 for fiscal years 2008 and 2007. The Put Option value is revalued on a quarterly basis based on most recent financial results of the acquired company and the Put Option value accretion adjusted accordingly, with the floor in all cases being the Initial Minority Interest.

During fiscal year 2007, the aggregate total assets acquired in all of the acquisitions as discussed above, included total goodwill of approximately $47.0 million, total intangible assets of approximately $7.6 million and total capitalized software costs of approximately $2.9 million. The pro forma effect of these acquisitions was not material to the consolidated financial position and results of operations presented herein.

FY 2006:

COMMERCIALWARE, INC.

On February 1, 2006, the Company acquired CommercialWare, Inc. (“CommercialWare”), a privately held provider of cross-channel retail solutions, by acquiring all of the issued and outstanding stock of CommercialWare. The acquisition, for a total cash purchase of approximately $14.2 million, net of cash acquired, did not include a subsidiary of CommercialWare, which developed and supported a limited version of certain CommercialWare products targeted toward particular retail sectors. During fiscal year 2008, all of the portion of the purchase price remaining in escrow was released to the former shareholders of CommercialWare, with approximately $0.3 million remaining in escrow pending resolution of outstanding issues. Headquartered in Westborough, Massachusetts, CommercialWare is operating as a subsidiary of Datavantage Corporation (“Datavantage”), a wholly-owned subsidiary of the Company.

In aggregate, goodwill of approximately $8.3 million and intangible assets of approximately $2.8 million were recorded in connection with the acquisition. The pro forma effect of this acquisition was not material to the consolidated financial position and results of operations presented herein. During fiscal years 2008 and 2007, the Company adjusted its realization of operating loss carryforwards related to CommercialWare acquisition which resulted in adjustments in non-current deferred tax assets and goodwill associated with the acquisitions.

5.	INVENTORY:

The components of inventory at June 30 are as follows:

(in thousands)	2008		2007
Raw materials	$	5,521	$	5,687
Work-in-process		21		38
Finished goods		59,033		42,065
	$	64,575	$	47,790

The Company maintains a reserve for obsolescence for inventory in the amount of approximately $11.5 million as of June 30, 2008 and approximately $9.9 million as of June 30, 2007. The Company reserved approximately $2.8 million, $3.2 million and $3.5 million during the three fiscal years 2008, 2007 and 2006, respectively, all related to potentially obsolete and slow moving products. The foreign currency translation adjustment on inventory balance was approximately $3.2 million as of June 30, 2008.

6.	PROPERTY, PLANT AND EQUIPMENT:

The components of property, plant and equipment at June 30 are as follows:

(in thousands)	2008			2007			Useful Life
Leasehold improvements	$	10,435		$	8,953			Shorter of useful life or lease term
Machinery and equipment		11,942			11,505			5-10 years
Furniture and fixtures		18,181			18,657			7-10 years
Computer hardware and software		67,112			65,192			3-7 years
Total property, plant and equipment		107,670			104,307
Accumulated depreciation and amortization		(78,505	)		(76,352	)
Net property, plant and equipment	$	29,165		$	27,955

Depreciation expense for the fiscal years 2008, 2007 and 2006 was approximately $12.6 million, $10.9 million and $9.4 million, respectively.

7.	ACCUMULATED OTHER COMPREHENSIVE INCOME:

The components of comprehensive income, net of tax, for the fiscal years ended June 30, were as follows:

(in thousands)	2008			2007		2006
Net income	$	101,284		$	79,988	$	63,528
Other comprehensive income:
Foreign currency translation adjustments		38,186			11,623		7,679
Unrealized loss on non-current investments		(2,651	)		—		—
Amortization of prior year pension costs		648			—		—
Total comprehensive income	$	137,467		$	91,611	$	71,207

Net income for fiscal years 2008, 2007 and 2006 includes approximately $17.2 million ($13.1 million, net of tax or $0.16 per diluted share), $14.0 million ($11.1 million, net of tax or $0.14 per diluted share) and $9.1 million ($7.1 million, net of tax or $0.09 per diluted share), respectively in non-cash share-based compensation expense. See Note 3, “Share-based Compensation.” See Note 2, “Investments, short-term and non-current” for further detail on unrealized loss on non-current investments.

8.	LINE OF CREDIT:

The Company has two credit agreements (the “Credit Agreements”) that in the aggregate, provide a $65.0 million multi-currency committed line of credit which expires on July 31, 2009. The lenders under the Credit Agreements are Bank of America, N.A., Wachovia Bank, N.A., and US Bank (“Lenders”). The international facility is secured by 65% of the capital stock of the Company’s main operating Ireland subsidiary and 100% of all of the capital stock of all of the remaining major foreign subsidiaries. The U.S. facility is secured by 100% of the capital stock of our major U.S. subsidiaries as well as certain inventory and receivables located in the U.S.

For borrowings in U.S. currency, the interest rate under the Credit Agreements is equal to the higher of the federal funds rate plus 50 basis points or the prime rate. For borrowings in foreign currencies, the interest rate is determined by a LIBOR-based formula, plus an additional margin of 125 to 200 basis points, depending upon the Company’s consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the immediately preceding four calendar quarters. Under the terms of the Credit Agreements, the Company is required to pay to the Lenders insignificant commitment fees on the unused portion of the line of credit. The Credit Agreements also contain certain financial covenants and restrictions on the Company’s ability to assume additional debt, repurchase stock, sell subsidiaries or acquire companies. In case of an event of default, as defined in the Credit Agreements including those not cured within the specified cure period, if applicable, the Lenders’ remedies include their ability to declare all outstanding loans, plus interest and other related amounts owed, to be immediately due and payable in full, and to pursue all rights and remedies available to them under the Credit Agreements or under applicable law.

As of June 30, 2008, the Company had approximately $1.0 million outstanding under the Credit Agreements and had approximately $64.0 million available for future borrowings. The total outstanding balance consisted of 105.0 million JPY (Japanese Yen), or approximately $1.0 million at the June 30, 2008 exchange rate.

The Company also has a credit relationship with a European bank in the amount of EUR 1.0 million (approximately $1.6 million at the June 30, 2008 exchange rate). Under the terms of this facility, the Company may borrow in the form of either a line of credit or term debt. As of June 30, 2008, there were no balances outstanding on this credit facility, but approximately EUR 0.1 million (approximately $0.2 million at the June 30, 2008 exchange rate) of the credit facility has been used for guarantees.

As of June 30, 2008, the Company had approximately $65.4 million borrowing capacity under all of the credit facilities described above. The weighted-average interest rate on the outstanding balances under the Credit Agreements as of June 30, 2008 was 2.2%.

9.	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES:

The components of accrued expenses and other current liabilities at June 30 are as follows:

(in thousands)	2008		2007
Compensation, benefits and related taxes	$	48,299	$	43,307
Deposits received from customers		36,977		35,422
VAT and sales taxes		9,970		10,644
Professional services		7,068		4,453
Product related		4,276		7,487
Other		18,323		15,829
	$	124,913	$	117,142

10.

GOODWILL:

Goodwill allocated to the Company’s reportable segments as of June 30, 2008 and 2007 and changes in the carrying amount of goodwill are as follows:

(in thousands)	United States			International			Total
Balance at June 30, 2006	$	87,223		$	11,358		$	98,581
Goodwill adjustment for prior years’ acquisitions		(3,788	)		(2,732	)		(6,520	)
Goodwill acquired:
RedSky		3,371			28,592			31,963
Other acquisitions		3,460			10,345			13,805
Foreign currency translation		—			503			503
Balance at June 30, 2007		90,266			48,066			138,332
Goodwill adjustment for prior years’ acquisitions		1,587			369			1,956
Goodwill acquired:
Check in Data		—			11,932			11,932
Other acquisition		4,035			—			4,035
Foreign currency translation		—			3,467			3,467
Balance at June 30, 2008	$	95,888		$	63,834		$	159,722

During fiscal years 2008 and 2007, the Company adjusted its goodwill with an offsetting adjustment to its net deferred tax assets related to its prior year acquisitions, primarily due to adjustments to purchase accounting and operating loss carryforwards.

Based on the results of its annual impairment tests, the Company determined that no impairment of goodwill existed at June 30, 2008, 2007 and 2006.

11.

INTANGIBLE ASSETS:

Purchased intangible assets are amortized over the estimated useful lives of the respective asset category unless such lives are deemed indefinite. The Company has identified trademarks as an indefinite-lived purchased intangible asset. Intangible assets were comprised of the following:

(in thousands except number of years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Useful Life (in years)

At June 30, 2008:
Customer lists	$	21,264	$	(6,742	)	$	14,522		3 – 10
Non-compete agreement		10		(4	)		6		4
Product lines		326		(284	)		42		4 – 5
Service revenue backlog		994		(371	)		623		3 – 5
Finite-lived purchased intangible assets		22,594		(7,401	)		15,193
Trademarks		975		—			975
Total	$	23,569	$	(7,401	)	$	16,168

At June 30, 2007:
Customer lists	$	16,953	$	(4,380	)	$	12,573		3 – 10
Non-compete agreement		10		(2	)		8		4
Product lines		326		(236	)		90		4 – 5
Service revenue backlog		1,002		(108	)		894		4 – 5
Finite-lived purchased intangible assets		18,291		(4,726	)		13,565
Trademarks		944		—			944
Total	$	19,235	$	(4,726	)	$	14,509

Trademarks are deemed to have indefinite lives and therefore are not amortized. Amortization expense related to finite-lived purchased intangible assets was approximately $2.5 million, $1.9 million and $1.1 million in the fiscal years 2008, 2007 and 2006, respectively. Based on the results of its annual impairment tests, the Company determined that no impairment of trademarks existed as of June 30, 2008, 2007 and 2006. Additionally, during the three fiscal years ended June 30, 2008, the Company did not encounter any events or circumstances indicating that the carrying amounts of its finite-lived purchased intangible assets may not be fully recoverable and thus may have been impaired. Accordingly, the Company did not recognize any impairment losses during the three fiscal years ended June 30, 2008.

Estimated amortization expense in future fiscal years ending June 30 is as follows (in thousands):

2009	$	2,463
2010		2,286
2011		2,164
2012		1,995
2013		1,848
Later years		4,437
Total	$	15,193

12.

COMMITMENTS AND CONTINGENCIES:

LEASES

The Company and its subsidiaries lease office space under operating leases expiring at various dates through 2016 and leases equipment under both operating and capital leases. The capital leases are primarily international automobile leases used by sales and installation personnel. Rent expense under the operating leases for each of the last three fiscal years ending June 30 was as follows:

(in thousands)	Rent Expense		Sublease Income			Net Rent Expense
2008	$	27,405	$	(931	)	$	26,474
2007		23,442		(934	)		22,508
2006		19,189		(998	)		18,191

As of June 30, 2008, future minimum lease payments for those leases having an initial or remaining non-cancelable lease term in excess of one year are as follows:

(in thousands)	Operating Leases		Less Sublease Rentals			Net Operating Leases		Capital Leases
Fiscal year ending June 30,
2009	$	27,242	$	(1,129	)	$	26,113	$	403
2010		22,132		(872	)		21,260		158
2011		14,305		(72	)		14,233		134
2012		11,419		(18	)		11,401		12
2013		10,007		—			10,008		6
2014 and thereafter		22,429		—			22,429		—
	$	107,534	$	(2,091	)	$	105,444		713
Less: current portion									403
Long-term obligations under capital lease								$	310

The Company leases its worldwide corporate headquarters located in Columbia, Maryland, consisting of 247,624 square feet, pursuant to a lease that expires February 29, 2016. The Company subleases one of the five floors, consisting of 49,524 square feet, to Motorola, Inc., under a sublease that expires March 1, 2010 (which Motorola may terminate after October 31, 2008.)

The Company leases its corporate central warehouse, distribution center in Hanover, Maryland, consisting of 75,600 square feet, pursuant to a lease that expires July 31, 2009.

The Company’s Datavantage subsidiary leases approximately 69,200 square feet of office and warehouse space in the Cleveland, Ohio area, from which it conducts the majority of its sales, marketing, customer support, and product development activities, and an additional approximately 27,234 square feet of office space in the Boston, Massachusetts area, primarily for customer support and research and development activities. The Cleveland lease expires February 28, 2014, (with a termination right available to the Company in 2010) and the Boston lease expires November 30, 2013.

LEGAL PROCEEDINGS

The Company is and has been involved in legal proceedings arising in the normal course of business.

There is a case pending in the U.S. District Court for the Northern District of Georgia, styled Ware v. Abercrombie & Fitch Stores, Inc. et al.; although the Company is not a party to that case, the Company may have some obligation to indemnify certain of the defendants who are our customers, based on the terms of our contracts with those customers. The plaintiff has alleged that the defendants are infringing a patent relating to the processing of credit card transactions. The defendants include approximately 107 individual retailers, 13 of whom are our customers for retail point-of-sale software. The Company is currently providing indemnity coverage to five of the defendants who are our customers in accordance with applicable provisions of the contracts between us and those customers. The indemnity coverage estimated as of June 30, 2008 is immaterial. Through June 30, 2008, the Company’s legal fees with respect to indemnity coverage for this matter have not been material. Currently, the case is subject to a court-ordered stay pending the completion of the United States Patent and Trademark Office’s reexamination of the patent that is the subject of the lawsuit. Should the case proceed, the Company will vigorously defend the action and assert all available defenses and arguments. In any event, based on currently available information, we do not believe that our products infringe the patent.

Heartland Payment Systems, Inc., has filed an action in the U.S. District Court for the District of New Jersey naming as defendants MICROS Systems, Inc., Merchant Link LLC, and Chase Paymentech Solutions, LLC. In its complaint, Heartland claims that MICROS, Merchant Link, and Paymentech have engaged in an anti-competitive arrangement relating to credit and debit card payment processing for restaurant point-of-sale systems, and further claims that this arrangement violates federal antitrust law and applicable New Jersey state laws. Heartland claims it has been damaged by virtue of being required to deal with Merchant Link if it wishes to provide services to users of MICROS POS software, by being required to pay fees to Merchant Link that it claims are inappropriate or excessive, and by being competitively disadvantaged relative to Chase Paymentech’s services. Heartland seeks monetary damages in excess of $12 million, and also injunctive and other equitable relief. In February 2008, the Company moved to dismiss the complaint on various grounds, but the court has not yet ruled on the motion. Because the motion is still pending, the Company’s answer to the complaint is not yet due; however, the Company disputes the substantive allegations in the complaint. Based on currently available information, the Company does not believe that its relationships and agreements with Merchant Link and Paymentech are anti-competitive or otherwise violate either federal antitrust law or applicable New Jersey law. If the court does not grant the Company’s motion to dismiss the complaint, the Company will vigorously contest the action.

On May 22, 2008, a jury returned a verdict of $7.5 million against the Company in the consolidated actions of Roth Cash Register v. MICROS Systems, Inc., et al. and Shenango Systems Solutions v. MICROS Systems, Inc., et al. The cases initially were filed in 2000 in the Court of Common Pleas of Allegheny County, Pennsylvania. The complaints both related to the non-renewal of dealership agreements in the year 2000 between the Company and the respective plaintiffs. The agreements were non-renewed as part of a restructuring of the dealer channel. The plaintiffs alleged that the Company and certain of our subsidiaries and employees entered into a plan to eliminate the plaintiffs as authorized dealers and improperly interfere with the plaintiffs' relationships with their respective existing and potential future clients and customers without compensation to the plaintiffs. As a result, the plaintiffs claimed that the Company was liable for, among other things, breach of contract and tortious interference with existing and prospective contractual relationships. The Company has moved for reconsideration of the verdict by the trial court, and, if unsuccessful in that regard, the Company intends to pursue a appeal, as the Company believes the instructions to the jury, certain rulings made by the trial court, and the jury verdict were erroneous on multiple legal grounds. There are no other litigation matters relating to the restructuring of the dealer channel in the year 2000. The Company has established only an immaterial reserve for any potential liability relating to the dealer litigation, as the Company believes that it has raised and can present strong points through post-trial motions and, if necessary, appeal, and therefore that an unfavorable outcome in the case is not probable. However, even if the verdict were not reversed or reduced as a result of the post-trial motions or any subsequent appeals, payment of the resulting obligation would not have a material adverse effect on the Company’s financial position or liquidity.

Subject to the foregoing, the Company is of the opinion, based upon presently available information and the advice of counsel concerning pertinent legal matters, that any resulting liability should not have a material adverse effect on the Company’s results of operations, financial position or cash flows.

13.

SHAREHOLDERS’ EQUITY:

In fiscal year 2002, the Board of Directors authorized the purchase of up to four million shares of the Company’s common stock, and during fiscal year 2005 the Company purchased all of the remaining unpurchased shares under the fiscal year 2002 authorization. In fiscal year 2005, the Board of Directors authorized the purchase of an additional four million shares of the Company’s common stock. As of October 2007, the Company purchased all of the remaining unpurchased shares under the fiscal year 2005 authorization. In November 2007, the Board of Directors authorized the purchase of an additional two million shares of the Company’s common stock. The Company has incurred an aggregate of approximately $0.2 million in fees related to all three of the stock purchase plans. As of June 30, 2008, approximately 0.1 million additional shares may be repurchased under the November 2007 authorization.

The following table summarizes the cumulative number of shares purchased under the repurchase authorizations. All repurchased shares have been retired:

	Number of Shares		Average Purchase Price per Share		Total Purchase Value (in thousands)

Total shares purchased as of June 30, 2005		4,993,324	$	10.65	$	53,180
Shares purchased during fiscal year 2006		1,842,674	$	21.83		40,234
Total shares purchased as of June 30, 2006		6,835,998	$	13.67		93,414
Shares purchased during fiscal year 2007		697,200	$	25.63		17,870
Total shares purchased as of June 30, 2007		7,533,198	$	14.77		111,284
Shares purchased during fiscal year 2008		2,329,302	$	31.90		74,303
Total shares purchased as of June 30, 2008		9,862,500	$	18.82	$	185,587

14.

INCOME TAXES:

Effective July 1, 2007, the Company adopted the provisions of FIN 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109.” FIN 48 clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. FIN 48 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The cumulative effect of adopting FIN 48 of approximately $2.6 million, including interest and penalties of approximately $0.3 million, was recorded as a reduction to retained earnings and an increase in net income taxes payable.

As a result of the adoption of FIN 48, the Company’s net unrecognized income tax benefits were approximately $17.4 million and $10.9 million, including interest and penalties of approximately $2.3 million and $1.6 million, at June 30, 2008 and July 1, 2007, respectively. The Company has recognized approximately $0.7 million of interest expense for the fiscal year 2008. The non-current components of the unrecognized income tax benefits were recorded as non-current to the extent that the Company does not anticipate making a payment within 12 months of the balance sheet date. If recognized, all of the unrecognized income tax benefit would be recognized as a reduction of income tax expense, impacting the effective income tax rate.

The following summarizes the significant components of the Company’s gross unrecognized tax benefits:

(in thousands)	Total Gross Unrecognized Tax Benefits
Balance, June 30, 2007	$	7,112
Transition adjustments		3,674
Balance, July 1, 2007		10,786
Current year uncertain tax positions:
Gross increases		4,182
Gross decreases		—
Prior year uncertain tax positions:
Gross increases		2,277
Gross decreases		(55	)
Expiration of statute of limitations		—
Settlements with tax authorities		—
Balance, June 30, 2008	$	17,190

The Company historically classified interest and penalties related to unrecognized income tax benefits as a component of income tax expense. The Company is maintaining this practice following its adoption of FIN 48.

The Company has reviewed its uncertain income tax positions in accordance with FIN 48, and currently is not able to reasonably estimate material changes in the unrecognized income tax benefits and the impact it would have on its consolidated financial position, results of operations and cash flows in the next twelve months. In addition, the Company reclassified certain tax liabilities, including penalties and interest for unrecognized tax benefits from current liabilities to long-term liabilities. The Company’s unrecognized tax benefits related to U.S. and various foreign jurisdictions.

In the ordinary course of the Company’s business, transactions occur for which the ultimate tax outcome may be uncertain. In addition, tax authorities periodically audit the Company’s income tax returns. These audits include examination of the Company’s significant tax filing positions, including the timing and amounts of deductions and the allocation of income and expenses among tax jurisdictions. The Company is currently under audits in certain of its major taxing jurisdictions, with open tax years beginning in fiscal year 1999. Currently, the Company is not able to reasonably estimate the completion date of these ongoing audits. The Company’s major taxing jurisdictions include Australia, Ireland, Germany, Singapore, the United Kingdom and the United States.

Income before taxes for the fiscal years ended June 30 was taxed under the following jurisdictions:

(in thousands)	2008		2007		2006
United States	$	66,915	$	52,977	$	36,202
International		87,424		68,677		59,463
	$	154,339	$	121,654	$	95,665

The components of income tax expense for the fiscal years ended June 30 are as follows:

(in thousands)	2008			2007			2006
Current:
Federal	$	29,720		$	23,233		$	19,137
State		2,996			3,020			3,168
Foreign		20,569			16,588			11,100
		53,285			42,841			33,405
Deferred:
Federal		(116	)		(1,667	)		(2,118	)
State		(225	)		(921	)		(524	)
Foreign		(777	)		501			692
		(1,118	)		(2,087	)		(1,950	)
	$	52,167		$	40,754		$	31,455

The total tax provision is different from the amount that would have been recorded by applying the U.S. statutory federal income tax rate to income before taxes. The reconciliation of these differences is as follows:

	2008			2007			2006
Statutory rate		35.0	%		35.0	%		35.0	%
Increase (decrease) resulting from:
State taxes, net of federal tax benefit		1.3			1.3			1.6
Effect of tax rates in foreign jurisdictions		(6.3	)		(7.6	)		(8.4	)
Prior years true up		0.5			1.0			3.5
Share-based and other compensation		1.8			1.8			1.4
Non-deferred foreign income		0.9			1.4			—
Domestic manufacturing deduction /
extraterritorial income exclusion benefit		(0.4	)		(0.4	)		(1.0	)
Other differences		1.0			1.0			0.8
Effective tax rate		33.8	%		33.5	%		32.9	%

The Company has not provided U.S. deferred income taxes on the cumulative unremitted earnings of its non-U.S. affiliates as the Company plans to permanently reinvest cumulative unremitted foreign earnings outside the U.S. and it is not practicable to determine the unrecognized deferred income taxes. These cumulative unremitted foreign earnings of approximately $457 million and $389 million for fiscal years 2008, 2007, respectively, relate primarily to ongoing operations in foreign jurisdictions and are required to fund foreign operations, capital expenditure and expansion requirements.

The following summarizes the significant components of the Company’s deferred tax assets and liabilities at June 30:

(in thousands)	2008			2007
Deferred tax assets:
Net operating loss carryforwards	$	10,660		$	10,713
Accruals not currently deductible for tax		9,662			8,709
Share-based compensation (non-qualified stock options)		7,454			4,464
Bad debt reserves		5,761			5,336
Inventory		2,141			2,552
Benefit related accruals not currently deductible for tax		1,653			5,200
Deferred revenues and customer deposits currently taxable		1,547			781
Tax impact of technology transfer		1,452			3,221
Other unrealized gains and losses		2,490			987
Tax credit carryforwards		—			581
Total deferred tax assets		42,820			42,544

Deferred tax liabilities:
Intangibles amortization		(8,256	)		(8,137	)
Capitalized software development costs		(5,138	)		(5,880	)
Depreciation		(1,282	)		(1,917	)
Other		(248	)		(160	)
Total deferred tax liabilities		(14,924	)		(16,094	)

Valuation allowance		(5,653	)		(2,716	)
Net deferred tax asset	$	22,243		$	23,734

The tax effected net operating loss carryforwards and related valuation allowance components of deferred taxes for the fiscal years ended June 30 are as follows:

(in thousands)	2008			2007
Net operating loss carryforwards:
U.S.	$	4,775		$	6,298
International		5,885			4,415
	$	10,660			10,713
Net operating loss carryforward valuation allowance:
U.S.		—			—
International		(5,653	)		(2,716	)
		(5,653	)		(2,716	)
Net operating loss carryforwards, net of valuation	$	5,007		$	7,997

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The Company is profitable on a consolidated basis, however, has incurred losses in certain foreign jurisdictions. A valuation allowance has been provided at June 30, 2008 and 2007 to offset the related deferred tax assets due to uncertainty of realizing the benefit of the net operating loss carryforwards.

The Company’s net operating loss carryforwards and tax credit carryforwards (if not applied against taxable income) as of June 30, 2008 expire as follows:

	Expires in Fiscal Year
(in thousand)	2009			2010		Thereafter			No Expiration			Total
U.S.:
Net operating loss carryforwards	$	—		$	—	$	4,775		$	—		$	4,775
Valuation allowances		—			—		—			—			—
		—			—		4,775			—			4,775
International:
Net operating loss carryforwards		213			—		1,674			3,998			5,885
Valuation allowances		(213	)		—		(1,533	)		(3,907	)		(5,653	)
		—			—		141			91			232
Net operating loss carryforwards,
Net of valuation allowances	$	—		$	—	$	4,916		$	91		$	5,007

15.

OTHER INCOME (EXPENSE), NET:

Other income (expense) for the fiscal years ended June 30 comprised of the following:

(in thousands)	2008			2007			2006
Grant	$	1,726		$	—		$	—
Foreign exchange loss, net		(1,384	)		(403	)		(940	)
Life insurance settlement		—			1,325			—
Other, net		255			196			472
Total other income (expense), net	$	597		$	1,118		$	(468	)

For fiscal year 2008, the Company recognized approximately $1.7 million in income due to a grant payment received related to the number of jobs we created in Ireland. Specifically, the Irish Development Authority agreed to pay MICROS a fee for having engaged and retained employees in the MICROS help desk and support center in Ireland. MICROS earned and received this fee in the fourth quarter of fiscal year 2008. For fiscal year 2007, the Company recognized approximately $1.3 million in one-time income due to death benefit received on corporate owned life insurance policy following the death of a covered officer of the Company.

16.

RELATED PARTY TRANSACTIONS:

Effective June 30, 1995, the Company and Louis M. Brown, Jr., Vice-Chairman of the Board, entered into a Consulting Agreement that, as amended, expired in accordance with its terms on June 30, 2008. Under the Consulting Agreement, Mr. Brown was to provide during each fiscal year on the average 20 hours per week of consulting services to the Company in exchange for a base consulting fee of approximately $0.3 million. Additionally for fiscal year 2007 and 2006, Mr. Brown’s total compensation also included annual target bonuses of approximately $0.2 million that were accrued during the fiscal year that they were earned and paid in the following fiscal year.

Notwithstanding the expiration of his Consulting Agreement, Mr. Brown continues to serve the Company as Vice-Chairman of the Board of Directors.

17.

EMPLOYEE BENEFIT PLANS:

DEFINED CONTRIBUTION PLANS

The Company sponsors employee savings plan (the “Plan”), which conforms to the provisions of Section 401(k) of the Internal Revenue Code. The Plan covers substantially all full-time and part-time employees in the U.S. and allows employees to voluntarily defer up to the government maximum per year of their income through contributions to the Plan. The Plan matches 50% of the first 5% in compensation deferred by each participating employee.

The Company also sponsors additional employee savings plans, which cover the Company’s employees in certain of its subsidiaries acquired during fiscal years 2008 and 2007. Similar to the Plan, these plans also conform to the provisions of Section 401(k) of the Internal Revenue Code, but have different terms and benefits. Typically, plans of acquired companies are terminated within approximately one year of the acquisitions, and subsequently the participants in these plans become participants in the Plan.

During each of the three fiscal years ended June 30, 2008, the Company’s matching contributions to the Plan were approximately $1.9 million. The Company does not have any material obligations to past or present employees related to post employment benefits.

DEFINED BENEFIT PLAN

The Company’s Supplemental Executive Retirement Plan (“SERP Plan”) provides designated officers and executives of the Company or their designated beneficiaries with benefits upon retirement or death. The Company funds the benefits under the SERP Plan with corporate owned life insurance policies held by a segregated trust (known as a “Rabbi Trust”), whose assets are subject to the claims of creditors of the Company. The SERP Plan is accounted for in accordance with SFAS 87, “Employers Accounting for Pensions”. The Board of Directors of the Company, in its sole discretion, selects the participants in the SERP Plan. The Board may remove participants, or modify benefit accrual levels for any participant who is not vested.

Under the terms of the SERP Plan, participants who are vested (or their designated beneficiaries upon death) will receive ten annual payments over nine years commencing six months after the earlier of death or retirement on or after age 62. Participants become vested after completing eight years of service with the Company and: (i) the participant attains age 62 (provided the person is employed by the Company on his or her 62^nd birthday); or (ii) there is a change in control of the Company (which is defined in the SERP Plan to include, generally, the acquisition of 50% or more of the outstanding shares of common stock or the combined voting power of the securities of the Company entitled to vote generally in the election of directors, or a merger or similar business combination that results in people or entities holding at least 50% of the outstanding stock or voting power of the stock who did not hold such stock or interests before the transaction); or (iii) the participant dies before attaining age 62. The value of benefits under the SERP Plan is not based on years of service, but is determined based on the (1) participant’s age at retirement, at a change of control of the Company or at death, and (2) a percentage the base salary received by the participant during the 12 months immediately preceding his or her retirement or death. The annual benefit rates are as follows:

Benefit rate
18%		Participant’s retirement between 62^nd and 63^rd birthday
		Participant’s death or change of control of the Company before 63^rd birthday
21%		Participant’s retirement, death or change of control of the Company after 63^rd birthday but before 64^th birthday
24%		Participant’s retirement, death or change of control of the Company after 64^th birthday but before 65^th birthday
30%		Participant’s retirement, death or change of control of the Company after 65^th birthday

During fiscal year 2008, there were 13 participants in the SERP Plan. As of June 30, 2008, the Board of Directors approved the removal of all participants that were not vested, and as a result, there were 3 participants in the SERP Plan as of June 30, 2008. As a result, during fiscal year 2008, the Company recorded a gain of approximately $1.7 million as a component of its periodic pension costs in the consolidated statement of operations related to the removal of all non-vested SERP participants. During fiscal year 2007, the Company received approximately $1.3 million in death benefits under the corporate owned life insurance policy, which has been recorded as non-operating “Other Income” in the consolidated statements of operations.

In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements 87, 88, 106 and 132(R)” (“SFAS 158”). SFAS 158 requires the Company to recognize the funded status (the difference between the fair value of plan assets and the projected benefit obligations) of the SERP Plan in the Company’s statement of financial position, with a corresponding adjustment to accumulated other comprehensive income, net of tax, to measure the fair value of plan benefit obligations as of its fiscal year ending June 30, 2007 and to provide additional disclosures. The Company adopted the recognition and disclosure provisions of SFAS 158 on June 30, 2007, and has included the effect of adoption in the accompanying consolidated financial statements. SFAS 158 did not have an effect on the Company’s consolidated financial condition at June 30, 2006 or operating results of fiscal year 2008, and will not affect the operating results of future periods. Due to the removal of non-vested participants as discussed above, the SERP Plan was fully funded as June 30, 2008.

The following tables provide information regarding the change in pension benefit obligation, funded status, and accumulated benefit obligation of the SERP Plan:

(in thousands)	2008			2007			2006
Change in Projected Benefit Obligation (“PBO”):
PBO at the beginning of year	$	13,545		$	7,019		$	7,060
Service cost		646			539			377
Interest cost		869			673			369
Curtailment gain		(10,435	)		—			—
Actuarial (gain) loss		(151	)		5,314			(787	)
Benefit payments		(81	)		—			—
PBO at the end of year	$	4,393		$	13,545		$	7,019

Fair value of plan assets		N/A			N/A			N/A

Funded Status of the Plan
(Unfunded) status of PBO	$	(4,393	)	$	(13,545	)	$	(7,019	)
Unrecognized prior service cost⁽¹⁾		N/A			N/A			4,942
Unrecognized net actuarial (gain) losses ⁽¹⁾		N/A			N/A			(148	)
Accrued benefit cost ⁽¹⁾		N/A			N/A		$	(2,225	)

Accumulated benefit obligation	$	4,393		$	6,835		$	4,709

Amount recognized in the consolidated balance sheet:
Accrued benefit liability ⁽²⁾	$	(4,393	)	$	(13,545	)	$	(4,709	)
Intangible asset ⁽¹⁾		N/A			N/A			2,484
Accrued benefit cost	$	(4,393	)	$	(13,545	)	$	(2,225	)
Accumulated other comprehensive loss:
Net unrecognized actuarial losses		N/A		$	4,985			N/A
Unrecognized prior service costs		N/A			4,594			N/A
		N/A			9,579			N/A
Tax benefit		N/A			(3,650	)		N/A
Accumulated other comprehensive loss, net of tax	$	N/A		$	5,929			N/A

(1) As a result of the adoption of SFAS 158 on June 30, 2007, these items are no longer applicable.

(2) Accrued benefit liability is included in Other Non-Current Liabilities on the consolidated balance sheets, except for approximately $0.1 million and less than $0.1 million as of June 30, 2008 and 2007, respectively, included in Accrued Expenses and Other Current Liabilities.

The components of amounts recognized in other comprehensive loss for fiscal years ended June 30 were as follows:

(in thousands)	2008			2007			2006
Prior service cost (credit)	$	(4,246	)	$	4,594			N/A
Net actuarial loss (gain)		(4,685	)		4,985			N/A
Amortization of prior service cost		(348	)		N/A			N/A
Amortization of net loss		(300	)		N/A			N/A
		(9,579	)		9,579			N/A
Tax effect		3,650			(3,650	)		N/A
Total recognized in other comprehensive loss, net of tax	$	(5,929	)	$	5,929			N/A

Assumptions used to measure benefit obligations at June 30 were as follows:

	2008			2007			2006
Discount rate ⁽¹⁾		6.00	%		6.10	%		6.14	%
Expected return on plan assets		—			—			—
Rate of compensation increase ⁽²⁾		N/A			9.00	%		5.00	%

(1) The discount rate assumption is based on the internal rate of return for a portfolio of high-quality bonds (Moody’s Aa Corporate bonds) with maturities that are consistent with projected future cash flows.

(2) The rate of compensation increase is not applicable for fiscal year 2008 as the SERP benefits are defined and fixed as of June 30, 2008 for the remaining SERP participants.

The incremental effects of adopting the provisions of SFAS 158 on the Company’s statement of financial position at June 30, 2007 were as follows:

(in thousands)	Pre SFAS 158			Incremental effect of adopting SFAS 158			Post SFAS 158
Intangible assets – pension	$	2,869		$	(2,869	)	$	—
Accrued benefit liability		(6,835	)		(6,710	)		(13,545	)
Non-current deferred income tax asset		—			3,650			3,650
Accumulated other comprehensive loss, net of tax		—			5,929			5,929
	$	(3,966	)	$	—		$	(3,966	)

The adjustments to accumulated other comprehensive income at June 30, 2007 (at adoption) were previously netted against the plan’s funded status in the Company’s statement of financial position pursuant to the provisions of SFAS 87. These amounts will be subsequently recognized as net periodic pension cost. The actuarial gains and losses that arise in subsequent periods and are not recognized as a net periodic pension cost in the same periods will be recognized as a component of other comprehensive income and will be subsequently recognized as a component of net periodic pension cost on the same basis as the amount recognized in accumulated other comprehensive income at adoption of SFAS 158.

The components of net periodic pension cost and the assumptions used to determine net cost for the fiscal years ended June 30 are as follows:

(in thousands)	2008			2007			2006
Service cost	$	646		$	539		$	377
Interest cost		870			673			369
Curtailment gain ⁽¹⁾		(1,717	)		—			—
Amortization of prior service cost		648			529			429
Net periodic pension cost	$	447		$	1,741		$	1,175

Discount rate		6.10	%		6.14	%		4.96	%
Expected return on plan assets		—			—			—
Rate of compensation increase		9.00	%		8.0	%		5.0	%

(1) Due to the removal of unvested SERP participants as of June 30, 2008.

The total periodic pension costs for fiscal year 2009 consists of an interest cost of approximately $0.3 million.

As of June 30, 2008, the projected benefit payments to be paid from the SERP Plan are as follows for the fiscal years ending June 30 (in thousands):

2009	$	101
2010		101
2011		101
2012		701
2013		701
2014 – 2018		3,423

18.

SEGMENT INFORMATION:

SFAS No. 131, “Disclosures about Segments of an Enterprise and Related Information,” (“SFAS 131”) establishes standards for reporting information about operating segments. This standard requires segmentation based on the Company’s internal organization and reporting of financial results. The Company’s financial reporting systems present various data to enable management to run the business. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Company’s Chief Executive Officer.

The Company is organized and operates in four operating segments: U.S., Europe, the Pacific Rim, and Latin America regions. As the products and services for all new business acquisitions are all similar to those of the Company, the new business acquisitions have been incorporated into the existing four operating segments based on their respective geographical locations, and operated and managed as a part of that operating segment.

For the purposes of applying SFAS 131, the Company has identified U.S. as a separate reportable segment and has aggregated its three international operating segments into one reportable segment, international, as the three international operating segments share many similar economical characteristics. Management views the U.S. and international segments separately in operating its business, although the products and services are similar for each segment.

A summary of the Company’s reportable segments is as follows:

	Fiscal Years Ended June 30,
(in thousands)	2008			2007			2006
Revenues ⁽¹⁾:
United States	$	430,081		$	379,272		$	365,642
International		743,442			567,862			433,256
Intersegment eliminations ⁽²⁾		(219,339	)		(161,407	)		(119,945	)
Total revenues	$	954,184		$	785,727		$	678,953
Income before taxes, minority interests and equity in
net earnings of affiliates ⁽¹⁾:
United States	$	51,097		$	43,186		$	26,719
International		281,660			211,284			165,263
Intersegment eliminations ⁽²⁾		(178,418	)		(132,816	)		(96,317	)
Total income before taxes, minority interests
and equity in net earnings of affiliates	$	154,339		$	121,654		$	95,665
Capital expenditures ⁽³⁾:
United States	$	7,419		$	5,481		$	7,256
International		5,525			5,798			3,484
Total capital expenditures	$	12,944		$	11,279		$	10,740
Depreciation and amortization ⁽³⁾:
United States	$	7,582		$	7,301		$	6,660
International		7,561			5,420			3,799
Total depreciation and amortization	$	15,143		$	12,721		$	10,459

Maryland	52-1101488
(State of Incorporation)	(I.R.S. Employer Identification No.)

7031 Columbia Gateway Drive, Columbia, Maryland 21046-2289
(Address of Principal Executive Offices, Including Zip Code)

Title of Each Class		Name of Exchange
Common Stock, par value $0.00625 per share		The NASDAQ Stock Market LLC

		Page No.
PART I

Item 1.	Business	4
Item 1A.	Risk Factors	16
Item 1B.	Unresolved Staff Comments	18
Item 2.	Properties	18
Item 3.	Legal Proceedings	20
Item 4.	Submission of Matters to a Vote of Security Holders	20

PART II

Item 5.	Market for the Registrant’s Common Equity, Related Stockholder Matters, and	21
	Issuer Purchases of Equity Securities
Item 6.	Selected Consolidated Financial Data	22
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	36
Item 8.	Financial Statements and Supplementary Data	37
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	37
Item 9A.	Controls and Procedures	37
Item 9B.	Other Information	37

PART III

Item 10.	Directors and Executive Officers of the Registrant	38
Item 11.	Executive Compensation	38
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related	38
	Stockholder Matters
Item 13.	Certain Relationships and Related Transactions	38
Item 14.	Principal Accounting Fees and Services	38

PART IV

Item 15.	Exhibits and Financial Statement Schedules	39
Signatures		72
Exhibit Index		73

· Accor (France)	· Hilton International	· Peninsula (Hong Kong)
· Best Western	· Hyatt International	· Shangri-La (Hong Kong)
· Camino Real (Mexico)	· InterContinental Hotels Group	· Société du Louvre (France)
· Carlson Hotels	· Kempinski (Germany)	· Solare (Japan)
· Danubius (Bulgaria)	· Loews	· Starwood International
· Dusit Thani (Thailand)	· MGM Mirage	· Steigenberger
· Extended Stay America	· Marriott International	· Thistle (United Kingdom)
· Fairmont	· Millennium	· Wyndham Worldwide, and
· Federal (Malaysia)	· Mövenpick (Switzerland)	· Wynn Resorts
· Four Seasons	· Omni

· Boscolo (Italy)	· MacDonalds (UK)	· Sokos (Finland)
· Camino Real	· MGM Mirage	· Starhotels (Italy)
· Constellation (Australia)	· Oberoi (India)	· Sun International (South Africa)
· Equatorial (Malaysia)	· Omni	· Thistle
· Fairmont	· Pan Pacific (Singapore)	· Westmark
· Four Seasons	· Red Lion	· Wyndham Worldwide, and
· Great Wolf Resorts	· Rydges (Australia)	· Wynn Resorts
· Hard Rock Hotels	· Shangri-La
· Loews Hotels	· Société du Louvre

· Bertucci’s	· Fazer Amica (Finland)	· Lone Star
· Chevy’s	· Friendly’s	· Marie Callender’s
· Corporación Mexicana de	· Groupe Le Duff (France)	· Mitchells and Butlers (U.K.)
Restaurantes (Mexico)	· Hard Rock Café	· Perkins
· Cracker Barrel	· HMS Host	· Rainforest Cafe
· Denny’s	· Hooters	· Ruby Tuesday’s
· Eat ‘n Park	· International House of Pancakes	· T.G.I. Friday’s
· El Torito	· Johnny Carinos	· VIPS (Spain)
· ESPN Zone	· La Madeleine	· Whitbread PLC (United Kingdom).

· Atlanta Bread	· Fuddruckers	· Starbucks (mainly international sites)
· Arby’s	· Grandy’s	· Subway
· Auntie Anne’s	· Krispy Kreme	· Tropical Smoothie Café
· Baja Fresh	· Nordsee (Germany)	· Wendy’s
· Ben & Jerry’s	· Pollo Campero (Guatemala)	· Zaxby’s, and
· Burger King	· Panera Bread	· Yum! Brands (Pizza Hut, KFC
· Checkers	· Popeye’s	International, and Taco Bell).
· El Pollo Loco	· Red Rooster (Australia)
· Fazoli’s	· Retail Brand Group

· Abercrombie & Fitch	· Home Depot Canada	· S & K Famous Brands
· Adidas AG (Germany) and Adidas USA	· Hugo Boss AG (Germany)	· Señor Frogs (Mexico)
· Armani Exchange	· J. Jill Group	· Shaw’s Markets
· Barney’s New York	· Jos. A. Banks Clothiers	· Steve Madden Retail
· Books-A-Million	· Limited Too	· Talbots
· Blain Supply	· Michael’s Arts and Crafts	· Urban Brands
· Blue Spirit (Italy)	· Polo Ralph Lauren	· the U.S. Mint
· Brazin Ltd. (Australia)	· Reebok Retail	· Zales, and
· CSK Auto	· Ritz Camera	· the four largest grocery chains in the UK
· Garnet Hill	· Roots Canada Ltd.
	· Starbucks

Hotel Products		Description

Software

Fidelio Versions 7 and 8 PMS		PMS software products for hotel reservations

OPERA PMS		PMS software product for hotel reservations, targeted to full service hotels

OPERA Xpress PMS		PMS software product for hotels, targeted to limited service hotels

OPERALite PMS		PMS software for hotels, targeted to smaller hotels

OPERA Revenue Management System		Software that helps hotels develop and manage pricing strategies

OPERA Customer Information System		Software that manages customer information and loyalty programs

OPERA Vacation Ownership System		Software that manages reservations for hotel condominiums and related condominium management

OPERA Web Booking Suite System		Software that enables OPERA PMS to receive Internet reservations

OPERA Sales and Catering		Software that helps hotels manage meeting needs (food, hotel rooms, meeting space, and other customer needs)

OPERA Sales Force Automation (SFA)		Software that manages leads, meeting agendas, and contracting, and provides other support to the national and regional sales teams for hotel chains

OPERA Activity Scheduler		Software that manages the scheduling and billing for hotel resort recreational activities, such as golf, tennis, spas, etc.

OPERA Kiosk		Enables guest check-in and check-out at stand-alone kiosk, and other interactive features

myfidelio.net		An Internet based hotel reservation service and network

Fidelio Cruise Systems		A suite of software products that manages reservations, POS and other activities for the cruise industry

Materials Management		Software that provides inventory control and costing for food production, mainly marketed to hotel restaurants

RedSky ImagInn		PMS software products for hotels, targeted at limited-service, independent, and economy hotels.

Restaurant Products		Description

Software

9700 HMS		POS software for large foodservice, leisure and entertainment venues

Simphony		Centrally-hosted POS for large foodservice, leisure and entertainment venues

3700 POS		POS software for table service and quick service restaurants

Restaurant Enterprise Series (RES) 3000		Suite of software products for 3700 POS

Kitchen Display System		Component of RES 3000, providing additional reporting capabilities and information

RES Kiosk		Component of RES 3000, for self-ordering and customer information via kiosk or other hardware

HSI Profit Series POS		POS software for table service restaurants (only marketed through the HIS division)

Indatec		POS software for small restaurants (only marketed in Europe)

mymicros.net		Suite of web based software products for use with restaurant POS products

myhsi.net		Suite of web based software products for HSI Profit Series

e7 POS		POS product for small restaurants (only marketed in North and South America)

Tangent POS		POS software for stadiums, arenas, and similar venues

Hardware

Workstation 5 Terminal		Windows CE POS and WEPOS terminal for restaurants

Workstation 4-LX Terminal;		Windows CE POS terminal for restaurants-enhanced version of Workstation 4

2010 PC Workstation		PC based POS terminal for restaurants

Keyboard Workstation Terminal		Windows CE POS terminal used in large complex foodservice, leisure and entertainment venues

Indatec POS Terminal		POS terminal that operates the Indatec POS software

JTECH Paging Products		Suite of paging products

Kitchen Display System		Hardware for kitchen display systems

Retail Products		Description

Software

Store 21 Store Management System		POS retail software product targeted for specialty retailers

Tradewind Store Management System		POS retail software product targeted for stores with high volume transactions

Xstore Management System		Java based POS retail software product

Home Office Business Intelligence Suite		Suite of software products that analyzes, manages and reports on business activities at the store level for corporate control (which includes XBR Loss Prevention)

Gift Cards Software		Software product that manages a retailer’s gift card program

CWDirect Cross Channel Order Management System		Software that manages orders across multiple methods of ordering (phone, kiosk, Internet, etc.)

CWLocate Merchandise Location System		Software that enables a retailer to locate inventory across multiple locations

CWCollaborate		Software that connects retailers with suppliers to efficiently manage inventory and reorder levels

Creations		Software that manages and tracks a product’s lifecycle and its supply chain

eOneCommerce		Web site development and portal management services for business to business order management, customer list management and sales promotion support

Location		Products
Columbia, Maryland		Restaurant POS software and hardware, Internet-based restaurant applications
Sydney Australia		Additional restaurant POS software development
Neuss Germany		Additional restaurant POS software development; Fidelio version 8.
Singapore		Additional restaurant POS software development
Bernau am Chiemsee, Germany		Restaurant POS software and hardware (Indatec only)
Scottsdale Arizona		Restaurant POS software (HSI only)
Naples, Florida		Hotel PMS software and other modules, also Internet-based hotel applications
Cleveland Ohio		Retail POS software development
Westborough, Massachusetts		Retail Loss Prevention software development, cross-channel software development
Omaha, Nebraska		Retail web site development and management services
Boca Raton, Florida		Paging software and hardware development
Hounslow UK		Hotel product development (ImagInn) and retail product development (Creations)

By Geographical Region	North America			Europe/Africa Middle East			Asia/ Pacific			Latin America			Total
Employees		2,356			1,459			568			236			4,619
As % of total		51.0	%		31.6	%		12.3	%		5.1	%		100.0	%

By Functional Skills	Sales & Marketing			Customer Support			Product Development			Admin./ Finance			Operations			Total
Employees		2,628			1,049			521			278			143			4,619
As % of total		56.9	%		22.7	%		11.3	%		6.0	%		3.1	%		100.0	%

	Fiscal Year Ended June 30,
	% of Reported Revenues									Exchange Rates
Revenues by currency ⁽¹⁾:	2008			2007			2006			2008		2007		2006
United States Dollar		49	%		53	%		59	%		1.0000		1.0000		1.0000
European Euro		22	%		25	%		21	%		1.5744		1.3535		1.2792
British Pound Sterling		9	%		6	%		5	%		1.9919		2.0081		1.8493
Canadian Dollar		2	%		1	%		1	%		0.9806		0.9385		0.8957
Australian Dollar		2	%		2	%		2	%		0.9587		0.8478		0.7432
Mexican Peso		2	%		2	%		2	%		0.0970		0.0926		0.0882
All Other Currencies⁽²⁾		14	%		11	%		10	%		0.2888		0.1631		0.1941
Total		100	%		100	%		100	%

	1^st Quarter		2^nd Quarter		3^rd Quarter		4^th Quarter
Fiscal Year Ended June 30, 2008
High	$	33.30	$	37.49	$	37.35	$	36.64
Low	$	26.45	$	30.29	$	26.33	$	28.40
Fiscal Year Ended June 30, 2007
High	$	25.63	$	26.79	$	28.85	$	28.38
Low	$	18.04	$	24.05	$	25.40	$	25.13

	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Maximum Number of Shares that May Yet be Purchased Under the Plan or Program

04/01/08 – 04/30/08		100,000	$	32.45		100,000		723,200
05/01/08 – 05/31/08		309,600	$	29.37		309,600		413,600
06/01/08 – 06/30/08		276,100	$	30.66		276,100		137,500
		685,700	$	30.34		685,700		137,500

Name		Position
A. L. Giannopoulos		Chairman, President and Chief Executive Officer
Bernard Jammet		Executive Vice President, Latin American Sales
Gary C. Kaufman		Executive Vice President, Finance and Administration and Chief Financial Officer
Jennifer Kurdle		Executive Vice President, Chief Administrative Officer
Thomas L. Patz		Executive Vice President, Strategic Initiatives, and General Counsel
Peter J. Rogers, Jr.		Executive Vice President, Investor Relations and Business Development
Cynthia A. Russo		Senior Vice President and Corporate Controller

(1)	Calculated using weighted average exchange rates for the fiscal year.
(2)	The “% of Reported Revenue” for “All Other Currencies” is calculated based on the weighted average twelve month exchange rates for all other currencies. The “Exchange Rates as of June 30” for ‘All Other Currencies’ represents the weighted average June 30 exchange rates for all other currencies. Weighting is based on the twelve month fiscal year revenue for each country or region.

Location	Approximate Size (Square Feet)	Use	Expiration Date	Additional Comments

Columbia, Maryland	247,624	Headquarters and other functions (see above)	February 29, 2016	See above

Hanover, Maryland	75,600	Warehouse, distribution, light assembly, configuration, manufacturing, repair	July 31, 2009

Cleveland, Ohio	69,200	Sales, marketing, support, product development	February 28, 2014 (with an early termination right in 2010)	Cleveland is the headquarters for the MICROS Retail group

Neuss, Germany	42,000	Sales, marketing, product development, and customer support	December 31, 2015	Also serves as the regional headquarters for Europe, Africa, and the Middle East

Westborough, Massachusetts	27,234	Sales, marketing, customer support, product development and product support	November 30, 2013	MICROS Retail maintains this office for its XBR loss prevention products, as well as for its CommercialWare products and services.

Boca Raton, Florida	19,755	Sales, marketing, product development, customer support and light assembly	February 29, 2012	Boca Raton is the headquarters for the JTECH subsidiary

Naples, Florida	18,180	Software development	December 31, 2011	Naples is the main site for the development of the Company’s hotel products

Galway, Ireland	18,025	Customer support, sales and marketing	May 31, 2022 (early termination rights in 2012, and 2017)	Support mainly for Europe, Africa, and Middle East customers

Nanterre, France	16,867	Sales, marketing, support	December 31, 2013 (with an early termination right in 2010)

Buffalo, NY	16,821	Sales, marketing, support	September 15, 2015	We have subleased a portion of this property to another company.

Sydney, Australia	13,500	Sales, marketing, support, product development	December 14, 2009

Scottsdale, Arizona	12,969	Sales, marketing, support, product development	January 31, 2016	Scottsdale is the headquarters for the HSI division

South Plainfield, New Jersey	12,846	Sales, marketing, support	April 30, 2011	Principal site for MICROS Retail - RedSky division sales, marketing and development in the U.S.

Mexico, DF	11,946	Sales, marketing, customer support, operations	November 30, 2009

Las Vegas, Nevada	11,930	Sales, marketing, support	July 31, 2010

Huntington Beach, California	10,970	Sales, marketing, support	January 31, 2010

Bernau, Germany	10,000	Sales, marketing, support, light assembly	June 30, 2010

Slough, England (four sites)	25,000	Sales, marketing, support	Ranges from September 29, 2013 to December 31, 2016 (early termination rights ranges from 2009 - 2010)

Singapore	9,367	Sales, marketing, support	August 31, 2008

	Fiscal Year Ended June 30,
(in thousands, except per share data)	2008⁽¹⁾		2007⁽¹⁾		2006⁽¹⁾		2005		2004
Statement of Operations Data:
Revenue	$	954,184	$	785,727	$	678,953	$	597,264	$	487,443
Income from operations	$	139,303	$	110,588	$	91,277	$	78,875	$	56,834
Net income	$	101,284	$	79,988	$	63,528	$	53,660	$	33,279
Net income per share ⁽⁶⁾:
Basic	$	1.23	$	1.00	$	0.82	$	0.72	$	0.46
Diluted	$	1.21	$	0.97	$	0.78	$	0.67	$	0.43

Balance Sheet Data:
Working capital ⁽²⁾	$	392,939	$	344,566	$	253,121	$	190,436	$	118,617
Total assets	$	1,003,006	$	846,756	$	647,857	$	547,228	$	419,587
Capital leases ⁽³⁾	$	713	$	915	$	513	$	413	$	305
Shareholders’ equity ⁽⁴⁾	$	673,016	$	551,133	$	417,116	$	345,171	$	262,973
Book value per share ^{(4), (5),} ⁽⁶⁾	$	8.32	$	6.80	$	5.35	$	4.47	$	3.59

Additional Data:
Weighted average number of common shares outstanding ⁽⁶⁾:
Basic		81,546		79,978		77,383		75,029		72,979
Diluted		83,346		82,581		81,248		79,607		76,905

	Fiscal Year Ended June 30,
	U.S.				International				Total
(in thousands)	2008		2007		2008		2007		2008		2007
Hardware	$	131,712	$	126,596	$	134,253	$	107,242	$	265,965	$	233,838
Software		60,012		50,745		98,687		82,075		158,699		132,820
Service		224,734		186,798		304,786		232,271		529,520		419,069
Total Revenue	$	416,458	$	364,139	$	537,726	$	421,588	$	954,184	$	785,727

	Number of Shares		Average Purchase Price Per Share		Total Purchase Value (in thousands)
Fiscal year:
2002 – 2005		4,993,324	$	10.65	$	53,180
2006		1,842,674	$	21.83		40,234
2007		697,200	$	25.63		17,870
2008		2,329,302	$	31.90		74,303
Total as of June 30, 2008		9,862,500	$	18.82	$	185,587

(in thousands, except ratios)	2008			2007
Cash, cash equivalents and marketable securities⁽¹⁾	$	381,964		$	329,652
Available credit facilities	$	66,574		$	66,353
Outstanding credit facilities		(989	)		(2,308	)
Outstanding guarantees		(201	)		(248	)
Unused credit facilities	$	65,384		$	63,797
Working capital ⁽²⁾	$	392,939		$	344,566
Capital lease obligations ⁽³⁾ :
Current	$	403		$	655
Non-current		310			260
Total	$	713		$	915
Shareholders’ equity	$	673,016		$	551,133
Current ratio ⁽³⁾		2.33			2.34

	Payments due by period
(in thousands)	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Net operating lease obligations	$	105,444	$	26,113	$	35,493	$	21,409	$	22,429
Capital lease obligations		713		403		292		18		—
Total	$	106,157	$	26,516	$	35,785	$	21,427	$	22,429

	As of June 30, 2008
Plan category	Number of securities to be issued upon exercise of outstanding options, warrants		Weighted-Average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
	(a)		(b)		(c)
Equity compensation plans approved by security holders		6,246,928	$	22.46		3,068,537

Equity compensation plans not approved by security holders		N/A		N/A		N/A
Total		6,246,928	$	22.46		3,068,537

	As of June 30,
(in thousands)	2008		2007
Identifiable assets ⁽³⁾:
United States	$	466,028	$	443,331
International		536,978		403,425
Total identifiable assets	$	1,003,006	$	846,756

Goodwill ⁽³⁾:
United States	$	95,888	$	90,266
International		63,834		48,066
Total goodwill	$	159,722	$	138,332

	Fiscal Year 2008
	1^st Quarter		2^nd Quarter		3^rd Quarter		4^th Quarter
Revenue	$	216,482	$	243,952	$	237,187	$	256,564
Gross margin	$	113,242	$	126,562	$	124,259	$	137,138
Income from operations^{(1), (3)}	$	29,085	$	33,397	$	34,759	$	42,064
Net income⁽¹⁾	$	21,304	$	24,089	$	25,146	$	30,746
Income from operations per common share ⁽¹⁾:
Basic	$	0.36	$	0.41	$	0.43	$	0.52
Diluted	$	0.35	$	0.40	$	0.42	$	0.51
Earnings per common share^{(1), (2), (3)}:
Basic	$	0.26	$	0.29	$	0.31	$	0.38
Diluted	$	0.25	$	0.29	$	0.30	$	0.37
Stock Prices (range of sales prices):
High	$	33.30	$	37.49	$	37.35	$	36.64
Low	$	26.45	$	30.29	$	26.33	$	28.40

	Fiscal Year 2007
		1^st Quarter		2^nd Quarter		3^rd Quarter		4^th Quarter
Revenue	$	173,701	$	189,875	$	200,556	$	221,594
Gross margin	$	88,669	$	98,854	$	105,015	$	118,973
Income from operations⁽¹⁾	$	20,649	$	25,096	$	27,214	$	37,629
Net income⁽¹⁾	$	15,111	$	18,018	$	19,450	$	27,410
Income from operations per common share ⁽¹⁾:
Basic	$	0.26	$	0.32	$	0.34	$	0.46
Diluted	$	0.25	$	0.30	$	0.33	$	0.45
Earnings per common share⁽¹⁾:
Basic	$	0.19	$	0.23	$	0.24	$	0.34
Diluted	$	0.19	$	0.22	$	0.23	$	0.33
Stock Prices (range of sales prices):
High	$	25.63	$	26.79	$	28.85	$	28.38
Low	$	18.04	$	24.05	$	25.40	$	25.13

Description	Balance at beginning of period		Charged To expense		Deductions			Other ⁽¹⁾			Balance at end of period
Year ended June 30, 2008:
Allowance for doubtful accounts	$	23,110	$	7,135	$	4,066⁽²	⁾	$	(2,169	)	$	28,348
Reserve for inventory obsolescence		9,893		2,753		2,116⁽³	⁾		949			11,479
	$	33,003	$	9,888	$	6,182		$	(1,220	)	$	39,827
Year ended June 30, 2007:
Allowance for doubtful accounts	$	20,335	$	3,356	$	340⁽²	⁾	$	(241	)	$	23,110
Reserve for inventory obsolescence		9,938		3,156		2,399⁽³	⁾		(802	)		9,893
	$	30,273	$	6,512	$	2,739		$	(1,043	)	$	33,003
Year ended June 30, 2006:
Allowance for doubtful accounts	$	16,202	$	5,409	$	375⁽²	⁾	$	(901	)	$	20,335
Reserve for inventory obsolescence		7,352		3,530		802⁽³	⁾		(142	)		9,938
	$	23,554	$	8,939	$	1,177		$	(1,043	)	$	30,273

			MICROS SYSTEMS, INC.

Date:	August 29, 2008	By:	/s/Gary C. Kaufman
			Gary C. Kaufman
			Executive Vice President, Finance and Administration/Chief Financial Officer


Date:	August 29, 2008	By:	/s/Cynthia A. Russo
			Cynthia A. Russo
			Senior Vice President and Corporate Controller

Name	Title

/s/A. L. Giannopoulos	Chairman, President and	August 29, 2008
A. L. Giannopoulos	Chief Executive Officer

/s/Gary C. Kaufman	Executive Vice President	August 29, 2008
Gary C. Kaufman	Finance and Administration
	Chief Financial Officer, and
	Principal Accounting Officer

/s/Louis M. Brown, Jr.		August 29, 2008
Louis M. Brown, Jr.	Director and
	Vice Chairman of the Board

/s/B. Gary Dando		August 29, 2008
B. Gary Dando	Director


/s/John G. Puente		August 29, 2008
John G. Puente	Director


/s/Dwight S. Taylor		August 29, 2008
Dwight S. Taylor	Director


/s/William S. Watson		August 29, 2008
William S. Watson	Director

Name of Subsidiary		Jurisdiction of Incorporation
Hospitality Technologies, S.A.		Argentina
MICROS-Fidelio Australia Pty Ltd.		Australia
MICROS-Fidelio Austria GmbH		Austria
MICROS-Fidelio Brazil, Ltda.		Brazil
MICROS-Fidelio (Canada) Ltd.		Canada
MICROS Systems Canada, Inc.		Canada
MICROS Fidelio Chile, S.A.		Chile
MICROS-Fidelio Information Systems (Shanghai) Co. Ltd.		China
CommercialWare, Inc.		Delaware, USA
JTECH Communications, Inc.		Delaware, USA
MSI Delaware, LLC		Delaware, USA
MICROS Fidelio Denmark ApS		Denmark
MICROS Fidelio Finland Oy		Finland
Fidelio Cruise, Inc.		Florida, USA
MICROS-Fidelio France, S.A.S.		France
MICROS-Fidelio GmbH		Germany
Fidelio Cruise GmbH		Germany
MICROS-Fidelio Hong Kong, Ltd.		Hong Kong
Fidelio India Private Ltd.		India
MICROS-Fidelio (Ireland), Ltd.		Ireland
MICROS Fidelio Israel Ltd.		Israel
MICROS-Fidelio Italia S.r.l.		Italy
MICROS-Fidelio Japan Ltd.		Japan
MICROS-Fidelio Korea Company Ltd.		Korea
MICROS-Fidelio Mexico S.A. de C.V.		Mexico
MICROS-Fidelio Worldwide, Inc.		Nevada, USA
MICROS Fidelio Norway A/S		Norway
Datavantage Corporation		Ohio, USA
MICROS-Fidelio Poland Sp.Z.o.o.		Poland
MICROS-Fidelio Software Portugal, ULDA		Portugal
MICROS Fidelio Caribbean, Inc.		Puerto Rico
MICROS-Fidelio Singapore Pte Ltd.		Singapore
MICROS-Fidelio España S.L.		Spain
MICROS-Fidelio Sweden A.B.		Sweden
Hotelbk A.B.		Sweden
Check-In Data A.G.		Switzerland
MICROS-Fidelio Thailand Co. Ltd.		Thailand
MICROS-Fidelio U.K. Ltd.		United Kingdom
RedSky		UK, USA

Date: August 29, 2008	/s/ A.L. Giannopoulos
	A.L. Giannopoulos
	Chairman, President and
	Chief Executive Officer

Date: August 29, 2008	/s/ Gary C. Kaufman
	Gary C. Kaufman
	Executive Vice President,
	Finance and Administration, and Chief Financial Officer