MicroStrategy Announces Second Quarter 2011 Financial Results
August 3, 2011 by admin
Filed under Latest Lingerie News
TYSONS CORNER, Va., Aug. 2, 2011 /PRNewswire via COMTEX/ –
MicroStrategy® Incorporated
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, a leading worldwide provider of business intelligence software, today announced financial results for the three-month period ended June 30, 2011 (the second quarter of its 2011 fiscal year).
Second quarter 2011 revenues were $138.2 million versus $107.5 million for the second quarter of 2010, a 28% increase. Product licenses revenues for the second quarter of 2011 were $33.4 million versus $28.9 million for the second quarter of 2010, a 16% increase. Product support and other services revenues for MicroStrategy’s core business intelligence (BI) business in the second quarter of 2011 were $98.7 million versus $74.5 million for the second quarter of 2010, a 32% increase.
Operating expenses for the second quarter of 2011 were $100.1 million versus $68.8 million for the second quarter of 2010, a 45% increase. The increase in operating expenses was primarily due to increased headcount and related expenses, particularly for engineering and sales personnel.
“Companies are seeking to capitalize on the emergence of big data, mobile, cloud and social media to operate more efficiently and gain competitive advantage. We have made significant investments to position ourselves to capitalize on these key trends in our marketplace,” said Douglas K. Thede, MicroStrategy’s Executive Vice President, Finance and Chief Financial Officer.
Net income for the second quarter of 2011 was $2.9 million, or $0.26 per share on a diluted basis, compared to $11.6 million, or $0.97 per share on a diluted basis, for the second quarter of 2010.
For the second quarter of 2011, MicroStrategy’s effective tax rate was 10% compared to 30% for the second quarter of 2010. The lower effective tax rate in the second quarter of 2011 was primarily attributable to a decrease in income from operations before income taxes and stronger results outside the U.S.
As of June 30, 2011, MicroStrategy had cash and cash equivalents of $193.0 million versus $174.1 million as of December 31, 2010, an increase of $18.9 million. As of June 30, 2011, MicroStrategy had 8,217,352 shares of class A common stock and 2,492,830 shares of class B common stock outstanding.
MicroStrategy Launches New Mobile, Cloud and Social Media Technologies:
MicroStrategy has introduced a number of innovative technologies designed to enable companies to capitalize on the big data, mobile, cloud and social media trends cited above.
MicroStrategy 9.2.1:
In July 2011, the Company announced the general availability of MicroStrategy 9.2.1. This latest release of the MicroStrategy Business Intelligence Platform(TM) features a new product, MicroStrategy Transaction Services(TM), which allows users to initiate actions and transactions from a mobile device. MicroStrategy Transaction Services helps companies increase the speed and productivity of their businesses by building mobile apps that connect to back-end transactional systems and databases. MicroStrategy Transaction Services allows mobile apps and web-based dashboards to include action-taking features, including submitting orders, one-click approvals and denials, notes for tracking and directing business activity, and write-back to data sources. Organizations can use the MicroStrategy platform to create the mobile apps they need to stay competitive. In addition, MicroStrategy 9.2.1 includes new enhancements to Visual Insight, which allows business people to quickly get insights from their data with little or no assistance from their information technology (IT) teams.
MicroStrategy Cloud:
MicroStrategy also announced the general availability of MicroStrategy Cloud(TM), a cloud-based platform-as-a-service. MicroStrategy Cloud enables rapid, cost-effective development of business intelligence and mobile and social apps. Compared to traditional on-premises BI approaches, MicroStrategy Cloud is faster to deploy, delivers world-class performance, and offers significant financial advantages. MicroStrategy Cloud is powerful and flexible enough to support the full range of cloud use cases, from fast, tactical BI solutions, to the largest implementations where performance and scalability are imperative. Unlike general-purpose cloud solutions that are not designed for the unique requirements of large-scale business intelligence, MicroStrategy Cloud is architected and optimized for large data volumes, high concurrency, and high performance. MicroStrategy Cloud includes the entire MicroStrategy BI platform technology for reporting and analysis, enabling users to tap into enterprise data from their desktop or mobile device, improving insight and business decision-making.
Gateway for Facebook:
In July 2011, the Company introduced Gateway for Facebook, a new cloud-based service that can interconnect enterprise IT environments and enterprise applications with the Facebook social graph. Gateway for Facebook converts the Facebook social graph data structure into a tabular data structure, making it easier for enterprise applications like CRM, marketing, service, sales, loyalty, and mobile applications to be personalized using data from Facebook. With the introduction of Gateway for Facebook, MicroStrategy is establishing its intention to be a leader in the emerging social media technologies space.
Gateway for Facebook incorporates a broad set of features to promote efficient interaction with the Facebook database and high performance response to enterprise applications:
Facebook Integration – Gateway uses Facebook’s open graph APIs.
Rich Data Query – Gateway can execute chained queries that generate rich query results by traversing social network pathways.
High Efficiency Query Algorithms – Gateway intelligently combines multiple overlapping queries into consolidated API calls to minimize the load on Facebook and maximize performance.
Real-time Data Response – Gateway maintains an operational database to house the social graph data, making the data available to applications, even when connectivity to Facebook is limited.
Facebook Governing Process Safeguards – Gateway has self-monitoring features that help prevent its data requests from exceeding Facebook’s governed maximums and automatically restrict query submission if the governed levels are approached.
Highly Scalable – Gateway is built using an MPP architecture, enabling it to achieve significant scale.
With Gateway for Facebook, a wide range of applications can be developed or enhanced with social intelligence, personalization, and social interactivity. These application types include Microsoft Windows applications, mobile applications for Apple iOS and Google Android, and ERP systems from Oracle, SAP, and Microsoft.
Alert:
In connection with the Gateway for Facebook launch, MicroStrategy also introduced Alert, a mobile Facebook application that gives Facebook users a new way to follow all of their favorite celebrity and brand Facebook pages. Alert presents users with a consolidated view of the news, events, photos, and videos from their favorite pages, while allowing users to organize those pages into customized groups. Alert enables brands to use their Facebook pages as a continual Twitter-like feed to their fans, and improves on the Twitter-like experience by supporting more text per message, supporting multimedia content, and providing the ability to RSVP to events and share postings within Facebook friend networks. Using Alert, brands can also share exclusive content with their Facebook fans, creating more meaningful interactions with them.
New Customers and New Deals with Existing Customers in Q2 2011 Included:
Activision; AEON Integrated Business Service Co.; Ancestry.com; Aquilent; Bank of America; Barclays Bank Delaware; baumarkt direkt; BBT Centralized Solutions; Belk; Bell Canada; Big Lots; Boehringer Ingelheim; Cisco Systems; Citibank; Credit Agricole; Department of Veterans Affairs; eBay; Emmi Schweiz; European Space Agency; FedEx; Gymboree Corporation; Hachette Book Group; Jabil Circuit, Inc.; JD Power and Associates; KT; LinkedIn; Liz Claiborne Canada; Logan’s Roadhouse; McAfee; McDonald’s Corporation; Meredith Corporation; Metro-Goldwyn-Mayer Studios; Navteq; O’Reilly Automotive; Payless ShoeSource Worldwide; QVC; Safeway; Sears Holdings Management Corporation; Shoppers Drug Mart; Sonic Automotive; Sony Electronics; Tilly’s; Universal Music Group; Valpak Direct Marketing Systems; and Warner Bros. Entertainment.
Examples of Customer Deals from Q2 2011:
Jabil Circuit, Inc.
With more than 100,000 employees and facilities in 22 countries, Jabil Circuit, Inc. is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. A MicroStrategy customer since 2009, Jabil Circuit uses MicroStrategy for a broad range of BI applications, including finance, operations, sales and merchandising, marketing, and supply chain analyses. A recent expansion of MicroStrategy licenses allows Jabil Circuit to monitor the usage and productivity of its MicroStrategy BI infrastructure across the enterprise. Jabil Circuit selected MicroStrategy for its ease-of-use, integrated platform, Web interface, and self-service infrastructure, which helps the company quickly address the reporting needs of their business.
LinkedIn, the world’s largest professional network on the Internet, recently expanded its agreement with MicroStrategy. With more than 100 million members worldwide, including executives from every Fortune 500 company, LinkedIn relies on MicroStrategy to access the company’s massive data warehouse and understand how its website is performing. MicroStrategy-based advanced analytics data also helps LinkedIn identify customer behavior and intraday trends, as well as monitor and evaluate key performance measures such as page views, registrations, invitations, and product usage.
Logan’s Roadhouse
Logan’s Roadhouse®, Inc., headquartered in Nashville, Tennessee, currently owns and operates over 200 company-operated and 26 franchised Logan’s Roadhouse restaurants in 23 states. A MicroStrategy customer since 2005, Logan’s Roadhouse uses MicroStrategy for a broad range of BI applications, including financial reporting and analysis, menu analysis, and exception reporting. A recent expansion of MicroStrategy licenses will allow Logan’s Roadhouse to track additional key performance indicators more efficiently and on a more timely basis. With help from MicroStrategy, Logan’s Roadhouse has improved efficiencies and the flow of information across the enterprise. MicroStrategy was selected for its high performance, robust reporting capabilities, and strong presence in the retail industry.
About MicroStrategy Incorporated
Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy software enables leading organizations worldwide to analyze the vast amounts of data stored across their enterprises to make better business decisions. The MicroStrategy Platform delivers actionable information to business users via the web and mobile devices, including the iPad®, iPhone®, and BlackBerry®. Companies choose MicroStrategy for its ease-of-use, sophisticated analytics, and superior data and user scalability. MicroStrategy offers free reporting software that can be downloaded from its website. To learn more about MicroStrategy
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MicroStrategy, MicroStrategy Business Intelligence Platform, MicroStrategy 9, MicroStrategy Transaction Services, MicroStrategy Cloud, and MicroStrategy Mobile are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.
This press release may include statements that may constitute “forward-looking statements,” including estimates of future business prospects or financial results and statements containing the words “believe,” “estimate,” “project,” “expect” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results of MicroStrategy Incorporated and its subsidiaries (collectively, the “Company”) to differ materially from the forward-looking statements. Factors that could contribute to such differences include: the extent and timing of market acceptance of MicroStrategy’s new offerings, including MicroStrategy 9.2.1, MicroStrategy Cloud, Gateway for Facebook and Alert; the Company’s ability to recognize revenue or deferred revenue through delivery of products or satisfactory performance of services; continued acceptance of the Company’s other products in the marketplace; the timing of significant orders; delays in the Company’s ability to develop or ship new products; competitive factors; general economic conditions, including significant downturns in industries, including the financial services and retail industries, in which we have a significant number of customers; currency fluctuations; impairment charges that may be required with respect to the Company’s damaged corporate aircraft; and other risks detailed in the Company’s registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
2011 2010 2011 2010
------------- ------------- ------------- -------------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues
Product licenses $ 33,430 $ 28,930 $ 60,810 $ 46,884
Product support and other services 104,721 78,607 199,370 154,043
Total revenues 138,151 107,537 260,180 200,927
------------- ------------- ------------- -------------
Cost of Revenues
Product licenses 2,322 1,860 4,230 3,775
Product support and other services 32,221 22,489 63,474 42,198
Total cost of revenues 34,543 24,349 67,704 45,973
------------- ------------- ------------- -------------
Gross profit 103,608 83,188 192,476 154,954
------------- ------------- ------------- -------------
Operating Expenses
Sales and marketing 60,942 39,361 112,453 72,748
Research and development 16,874 10,812 29,872 23,143
General and administrative 22,319 18,674 45,600 37,134
Total operating expenses 100,135 68,847 187,925 133,025
------------- ------------- ------------- -------------
Income from operations before
financing and other income and income taxes 3,473 14,341 4,551 21,929
------------- ------------- ------------- -------------
Financing and Other (Expense) Income
Interest income, net 39 15 121 117
Other (expense) income, net (316) 2,144 (947) 4,993
Total financing and other (expense) income (277) 2,159 (826) 5,110
------------- ------------- ------------- -------------
Income from operations before income taxes 3,196 16,500 3,725 27,039
Provision (benefit) for income taxes 311 4,882 (294) 8,520
------------- ------------- ------------- -------------
Net income $ 2,885 $ 11,618 $ 4,019 $ 18,519
Basic earnings per share (1) $ 0.27 $ 1.00 $ 0.38 $ 1.57
Weighted average shares outstanding used in computing basic earnings per share 10,709 11,629 10,690 11,759
Diluted earnings per share (1) $ 0.26 $ 0.97 $ 0.36 $ 1.52
Weighted average shares outstanding used in computing diluted earnings per share 11,068 12,029 11,056 12,165
(1) Basic and fully diluted earnings per share for class A and class B common stock are the same.
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Core BI Business Angel.com Consolidated
------------------- ------------------- ----------------------
Three Months Ended Three Months Ended Three Months Ended
June 30, June 30, June 30,
------------------- ------------------- ----------------------
2011 2010 2011 2010 2011 2010
--------- -------- ---------- ------- ---------- ----------
Revenues
Product licenses $ 33,430 $ 28,930 $ - $ - $ 33,430 $ 28,930
Product support and other services 98,717 74,527 - - 98,717 74,527
Angel.com services - - 6,004 4,080 6,004 4,080
Total revenues 132,147 103,457 6,004 4,080 138,151 107,537
--------- -------- ---------- ------- ---------- ----------
Cost of Revenues
Product licenses 2,322 1,860 - - 2,322 1,860
Product support and other services 29,409 20,399 - - 29,409 20,399
Angel.com services - - 2,812 2,090 2,812 2,090
Total cost of revenues 31,731 22,259 2,812 2,090 34,543 24,349
--------- -------- ---------- ------- ---------- ----------
Gross profit 100,416 81,198 3,192 1,990 103,608 83,188
--------- -------- ---------- ------- ---------- ----------
Operating Expenses
Sales and marketing 57,807 37,776 3,135 1,585 60,942 39,361
Research and development 15,779 9,985 1,095 827 16,874 10,812
General and administrative 21,617 18,246 702 428 22,319 18,674
Total operating expenses 95,203 66,007 4,932 2,840 100,135 68,847
--------- -------- ---------- ------- ---------- ----------
Income (loss) from operations before
financing and other income and income taxes 5,213 15,191 (1,740) (850) 3,473 14,341
--------- -------- ---------- ------- ---------- ----------
Financing and Other (Expense) Income
Interest income, net 39 15 - - 39 15
Other (expense) income, net (277) 2,121 (39) 23 (316) 2,144
Total financing and other (expense) income (238) 2,136 (39) 23 (277) 2,159
--------- -------- ---------- ------- ---------- ----------
Income (loss) from operations before income taxes $ 4,975 $ 17,327 $ (1,779) $ (827) $ 3,196 $ 16,500
Provision for income taxes 311 4,882
---------- ----------
Net income $ 2,885 $ 11,618
Basic earnings per share $ 0.27 $ 1.00
Weighted average shares outstanding used in computing basic earnings per share 10,709 11,629
Diluted earnings per share $ 0.26 $ 0.97
Weighted average shares outstanding used in computing diluted earnings per share 11,068 12,029
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Core BI Business Angel.com Consolidated
------------------- ------------------- ----------------------
Six Months Ended Six Months Ended Six Months Ended
June 30, June 30, June 30,
------------------- ------------------- ----------------------
2011 2010 2011 2010 2011 2010
--------- -------- ---------- ------- ---------- ----------
Revenues
Product licenses $ 60,810 $ 46,884 $ - $ - $ 60,810 $ 46,884
Product support and other services 186,566 145,865 - - 186,566 145,865
Angel.com services - - 12,804 8,178 12,804 8,178
Total revenues 247,376 192,749 12,804 8,178 260,180 200,927
--------- -------- ---------- ------- ---------- ----------
Cost of Revenues
Product licenses 4,230 3,775 - - 4,230 3,775
Product support and other services 57,907 38,554 - - 57,907 38,554
Angel.com services - - 5,567 3,644 5,567 3,644
Total cost of revenues 62,137 42,329 5,567 3,644 67,704 45,973
--------- -------- ---------- ------- ---------- ----------
Gross profit 185,239 150,420 7,237 4,534 192,476 154,954
--------- -------- ---------- ------- ---------- ----------
Operating Expenses
Sales and marketing 106,382 69,663 6,071 3,085 112,453 72,748
Research and development 27,773 21,643 2,099 1,500 29,872 23,143
General and administrative 44,156 36,192 1,444 942 45,600 37,134
Total operating expenses 178,311 127,498 9,614 5,527 187,925 133,025
--------- -------- ---------- ------- ---------- ----------
Income (loss) from operations before
financing and other income and income taxes 6,928 22,922 (2,377) (993) 4,551 21,929
--------- -------- ---------- ------- ---------- ----------
Financing and Other (Expense) Income
Interest income, net 121 117 - - 121 117
Other (expense) income, net (870) 4,970 (77) 23 (947) 4,993
Total financing and other (expense) income (749) 5,087 (77) 23 (826) 5,110
--------- -------- ---------- ------- ---------- ----------
Income (loss) from operations before income taxes $ 6,179 $ 28,009 $ (2,454) $ (970) $ 3,725 $ 27,039
(Benefit) provision for income taxes (294) 8,520
---------- ----------
Net income $ 4,019 $ 18,519
Basic earnings per share $ 0.38 $ 1.57
Weighted average shares outstanding used in computing basic earnings per share 10,690 11,759
Diluted earnings per share $ 0.36 $ 1.52
Weighted average shares outstanding used in computing diluted earnings per share 11,056 12,165
MICROSTRATEGY INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30, December 31,
2011 2010
----------- -----------------
Assets (unaudited) (audited)
Current assets
Cash and cash equivalents $ 193,025 $ 174,097
Restricted cash and short-term investments 470 284
Accounts receivable, net 70,974 82,056
Prepaid expenses and other current assets 19,314 26,751
Deferred tax assets, net 21,494 13,670
----------- -----------------
Total current assets 305,277 296,858
Property and equipment, net 78,931 65,033
Capitalized software development costs, net 10,831 9,059
Deposits and other assets 5,668 5,587
Deferred tax assets, net 2,385 5,029
----------- -----------------
Total Assets $ 403,092 $ 381,566
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 37,726 $ 36,683
Accrued compensation and employee benefits 51,941 60,201
Deferred revenue and advance payments 102,323 89,331
Deferred tax liabilities 236 355
----------- -----------------
Total current liabilities 192,226 186,570
Deferred revenue and advance payments 10,169 7,878
Other long-term liabilities 43,816 37,946
Deferred tax liabilities 385 -
----------- -----------------
Total Liabilities 246,596 232,394
----------- -----------------
Stockholders' Equity
Preferred stock undesignated, $0.001 par value; 5,000 shares authorized;
no shares issued or outstanding - -
Class A common stock, $0.001 par value; 330,000 shares authorized;
14,622 shares issued and 8,217 shares outstanding, and 14,351 shares
issued and 7,947 shares outstanding, respectively 15 14
Class B common stock, $0.001 par value; 165,000 shares authorized;
2,493 and 2,694 shares issued and outstanding, respectively 2 3
Additional paid-in capital 458,782 455,374
Treasury stock, at cost; 6,405 shares (475,184) (475,184)
Accumulated other comprehensive loss (1,558) (1,455)
Retained earnings 174,439 170,420
Total Stockholders' Equity 156,496 149,172
----------- -----------------
Total Liabilities and Stockholders' Equity $ 403,092 $ 381,566
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
June 30,
-----------------------
2011 2010
----------- ----------
Operating activities:
Net income $ 4,019 $ 18,519
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 7,851 6,119
Bad debt expense 266 1,648
Deferred taxes (2,852) 776
Excess tax benefits from stock-based payment arrangements (1,854) (12)
Other, net - 16
Changes in operating assets and liabilities:
Accounts receivable 13,149 (402)
Prepaid expenses and other current assets 5,043 (5,727)
Deposits and other assets 62 (882)
Accounts payable and accrued expenses (2,106) (2,564)
Accrued compensation and employee benefits (9,799) (5,439)
Deferred revenue and advance payments 11,831 12,606
Other long-term liabilities 5,856 6,724
----------- ----------
Net cash provided by operating activities 31,466 31,382
Investing activities:
Purchases of property and equipment (18,806) (4,307)
Capitalized software development costs (5,432) (2,185)
Insurance proceeds 5,675 -
(Increase) decrease in restricted cash and investments (167) 223
----------- ----------
Net cash used in investing activities (18,730) (6,269)
Financing activities:
Proceeds from sale of class A common stock under exercise of employee stock options 1,554 111
Excess tax benefits from stock-based payment arrangements 1,854 12
Purchases of treasury stock - (41,674)
----------- ----------
Net cash provided by (used in) financing activities 3,408 (41,551)
Effect of foreign exchange rate changes on cash and cash equivalents 2,784 (5,649)
----------- ----------
Net increase (decrease) in cash and cash equivalents 18,928 (22,087)
Cash and cash equivalents, beginning of period 174,097 224,769
----------- ----------
Cash and cash equivalents, end of period $ 193,025 $ 202,682
Contact:MicroStrategy IncorporatedInvestor Relationsir@microstrategy.com(703) 848-8600
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