320345--8/29/2007--MICROS_SYSTEMS

related topics

{customer, product, revenue}

{property, intellectual, protect}

{system, service, information}

{operation, natural, condition}

{operation, international, foreign}

{tax, income, asset}

{product, market, service}

{cost, contract, operation}

{cost, operation, labor}

{stock, price, operating}

{gas, price, oil}

{loan, real, estate}

{personnel, key, retain}

{condition, economic, financial}

{cost, regulation, environmental}

Our business is very sensitive to the threat of terrorism and political uncertainty. Our business is very sensitive to environmental and health disasters. Higher oil and gas prices worldwide could have a material adverse impact on the travel and tourism industries. We maintain offices in certain parts of the world that are subject to economic instability, political unrest and terrorism, such as Argentina, Brazil and Israel. We are subject to the variability of world economies. quarterly financial results are dependent upon the timing and size of customer orders and the shipment of products for large orders. Our ability to establish pricing is subject to rapidly changing market and competitive conditions. Our gross margins will vary from quarter to quarter based upon product mix. Our non-major account business is difficult to predict. Some of the advanced systems we sell are very complex and require a high level of technical sophistication, which may result in increased costs that adversely affect our operating results. We are subject to certain material cost increases that could become out of our control. We are subject to fluctuations in foreign currencies and exchange rates. As a publicly traded company, our stock price is subject to certain market gyrations that are out of our control and that have nothing to do with our actual operating performance. Our customers requirements are increasingly sophisticated. The development of software is an inherently difficult process that may result in software bugs that adversely impact a customer s business. The manufacturing of our hardware platform is performed primarily by GES, a company in Singapore. Large customized deployments may be difficult and may result in cost overruns that are not recoverable. Changes in technology may result in our investing in certain technologies that become obsolete, or may result in our delaying investing in technologies to our detriment. Actual or perceived security vulnerabilities in our software products may result in reduced sales or liabilities. We could be adversely affected by vendor labor difficulties. Our inability to hire or our delay in hiring qualified personnel could adversely impact our ability to satisfy customers needs and our ability to maintain appropriate internal controls. Although we attempt to protect our proprietary technology, these protections will not preclude competitors from developing products with features similar to our products. We are subject to litigation, which may be costly. We are subject to claims by others that we are infringing their intellectual property rights. Credit card issuers have promulgated credit card security guidelines as part of their ongoing effort to battle identity theft and credit card fraud. We may have additional tax liabilities. If our goodwill or amortizable intangible assets become impaired we may be required to record a charge to earnings.

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320345--8/29/2007--MICROS_SYSTEMS_INC