MICROS Systems, one of the 800-pound gorillas in the hospitality and hotel system segment, released strong year-end results last week. For the fiscal year that ended June 30, 2010, MICROS reported record numbers for gross margin for the year at 54.85%; record income from operations at $180 million, and record cash on hand at $605 million. Fourth-quarter results were consistent, with a 55% gross margin and an increase of 41% in net income.

While MICROS-Retail is the smallest segment among the company's divisions, it returned to strong annual growth of between 14-15%, versus 8%-10% for its restaurant business and 10-12% for its hotel business. In a recent conference call discussing these results, MICROS chairman and CEO Tom Giannopoulos pointed out that prior to the recession the company was consistently growing at approximately 17% annually.

The guidance for the 2011 fiscal year is for 9-10% growth overall, with retail growing at 16-17%, so the company is seeing real traction in this segment as it looks to match its strength in restaurant and hospitality. In addition, MICROS' international business is showing better growth than its North American business.

While it has been several years since the ‘roll-up’ acquisitions Micros made to form Micros-Retail, with $600 million of cash on-hand and an overall weak credit environment, the company is in a uniquely strong position to make acquisitions. With IBM on an acquisition tear that plays heavily into retail, Micros would do well to be looking at companies to bolster its solution set in the segment. Micros-Retail has made strong acquisitions to position itself in the evolution to cross-channel retailing, but it could use more arrows in the quiver to account for the growth in mobile and social retailing. Doing so can meet the needs of the retail industry as well as the growth goals of the company.