Recently announced, MICROS Systems, Inc. (MCRS) was awarded a project to provide its Simphony Enterprise Solution services at Wynn Las Vegas and Encore casino resort properties of Wynn Resorts. The task is due for completion on March 31, 2012.
According to the contract, the company would replace its existing MICROS 9700 Hospitality Management System (:HMS) and Legacy Point of Sale (:POS) solutions with its Simphony Software as a Service (SAAS). This would cater to over 100 Wynn Revenue centers including around 500 MICROS Workstation 5A (WS5A) service terminals.
MICROS’ Simphony platform is not only technologically embedded with more advanced features but also brings about effective managerial facilities which ameliorate communication between customers and property employees. Rather akin to the HMS, the system has the advantage of consuming less training time for adaptability and is more flexible in nature.
The company’s reputation, extensive and far reaching, and technologically superior offerings give it the edge to bring forth profitable ventures. Not long ago, Friendly’s Ice Cream, LLC expanded its existing ties with MICROS with the intent of availing the latter’s webOrdering and iCare Customer Relationship Management (CRM) solutions.
MICROS reported its second quarter financial results on January 26, 2012, which showed stability in growth across all segments – hardware, software and service. While revenues were in line with the Zacks Consensus Estimate of $270.4 million, margins escalated too annually. These recent projects and partnership extensions allow us to remain optimistically perspicacious about the company’s growth potential in the coming quarter as well.
It would, however, be wise for MICROS to keep a close watch on its competitors which include a few progressive players. NCR Corp. (NCR) recently earned a huge contract of $1.5 billion to provide ATM services to LegacyTexas Bank. Other big names which give stiff competition to MICROS are Mentor Graphics Corp. (MENT) and FARO Technologies, Inc. (FARO).
We continue to maintain a Neutral recommendation on MICROS. In the short run, we have a Zacks #4 Rank on the stock which translates into a short-term rating of Sell.
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