Earlier this week, MICROS Systems, Inc. (MCRS) received a multi-year contract extension from Orient-Express Hotels Ltd. (OEH). This was done with the intent of adding MICROS OPERA Sales and Catering solution (S&C) to MICROS OPERA Enterprise Solution services, which are already in use at Orient-Express.
MICROS’ OPERA S&C solutions shall enhance customer service management at the resort properties with flexible, personalized and user-friendly options which shall ameliorate customer services profoundly. Furthermore, this system supports easy internal management by providing advanced analytics and accounting tools for smooth operational efficiency.
As per the agreement, Orient-Express will replace its sales and catering management system with MICROS’ OPERA S&C platform at around 37 of its branches internationally, starting with the ones in the U.S and Mexico. The technologically advanced and fully integrated system shall allow for easy expansion along with enhanced customer service management.
We believe that this venture would be quite a profitable one for both parties involved. Orient-Express shall benefit from its sound catering management system whilst MICROS will solidify its existing ties with the reputed Orient-Express chain of hotels.
Not long ago, MICROS earned a technology contract from Broadwalk Fresh Burgers and Fries on May 3, 2012. We continue to aver that these contract wins are laudatory for the company as it traverses through turbulent times and challenging fiscal conditions. We are, therefore, hopeful that these deals shall allow the company to attain stability even if threats of market fluctuations loom large for the company.
There is still ominous competition prevalent in the industry MICROS pertains to. Companies to remain wary of in this regard while making advances include Diebold, Inc. (DBD), Agilysys Inc. (AGYS) and Orbotech Ltd. (ORBK).
The company currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. We also maintain a long-term ‘Neutral’ recommendation on the stock.
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