Last week, MICROS Systems, Inc. (MCRS) received a contract for its Restaurant Enterprise Solution (RES) services from Rex Restaurant Associates (RexRA). This was in accordance with RexRa’s new two openings at Central London, The Delaunay and Brasserie Zedel.
Being the sole technology partner in the two ventures, MICROS will not only provide its advanced RES platform but, as per the contract, will also encompass its integrated Chip & PIN and mymicros.net solutions for a risk-free, monitored and faster payment processing. In totality, this would ameliorate customer satisfaction levels as well as management efficiency at the restaurants.
Scheduled to start from June 2012, these two eating joints with their prime location at the heart of London have the potential to attract a wider range of customers. Furthermore, the great reputation of RexRA would seamlessly enhance the goodwill and market share for MICROS.
MICROS has been winning major contracts continually of late. On June 18, 2012, the company’s OPERA Enterprise Solution (:OES) was selected by Trump Hotel Collection for providing its hospitality management software platform at its Doral Golf Resort & Spa at Miami, Florida.
We believe that the interminable saga of contract wins and extensions would be the major growth driver for the company for its upcoming quarterly results. This is approbatory, judging by the ongoing gloomy fiscal condition still pervading the global economy at a macro level.
However, it is wise to always keep a close watch on peers in the industry. Big players in this regard include Diebold, Inc. (DBD) and Mentor Graphics Corp. (MENT).
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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