Micros Systems' stock sinks despite strong sales

Micros Systems profits rose 29 percent in the third quarter to $25 million, and the company raised revenue expectations for the year despite fears about the economy -- but its stock fell more than 16 percent in trading Thursday.

Revenue grew 18 percent in the quarter that ended March 31, to $237 million from $200 million during the same quarter a year ago. Year-to-date totals were also up -- revenue by 23 percent and profits by 34 percent. But shares of Micros Systems closed at $29.91 Thursday, down from a Wednesday closing price of $35.65, likely because the company said profits for this year would come in below Wall Street estimates.

The company is on pace to surpass $930 million in revenue for the year, up from the $910 million estimated at the end of the second quarter in January. But that figure will depend on the health of the economy, CEO Tom Giannopoulos said Wednesday in the company's earnings conference call.

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Giannopoulos said he is being cautious with company expenses, which grew 15 percent to $90 million in the third quarter, but does not expect the economic slowdown to delay planned installations of Micros (NASDAQ: MCRS) systems.

"To ignore what's going on on the macro level would be, from my point of view, foolish," Giannopoulos said during the call.

Micros specializes in point-of-sale technology used to process transactions in the restaurant, retail and hotel industries. The company is moving forward with installations of new products at Wyndham, IHG, Hyatt and Marriott hotels in the fourth quarter, Giannopoulos said.