EX-99.1 2 d292758dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

Contact:

MicroStrategy Incorporated

Investor Relations

ir@microstrategy.com

(703) 848-8600

MicroStrategy Announces

Fourth Quarter 2011 Financial Results

Record $160.3 Million in Total Revenues

TYSONS CORNER, Va., January 30, 2012 – MicroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, today announced financial results for the three-month period ended December 31, 2011 (the fourth quarter of its 2011 fiscal year).

Fourth quarter 2011 revenues were $160.3 million, the highest quarterly total revenues in company history, versus $139.1 million for the fourth quarter of 2010, a 15% increase. Product licenses revenues for the fourth quarter of 2011 were $54.5 million versus $47.7 million for the fourth quarter of 2010, a 14% increase. Product support and other services revenues for MicroStrategy’s core business intelligence (BI) business for the fourth quarter of 2011 were $99.5 million versus $85.8 million for the fourth quarter of 2010, a 16% increase.

Operating expenses for the fourth quarter of 2011 were $113.7 million versus $87.4 million for the fourth quarter of 2010, a 30% increase. The increase in operating expenses was primarily due to increased headcount and related expenses, particularly for engineering and sales personnel.

Net income for the fourth quarter of 2011 was $9.0 million, or $0.81 per share on a diluted basis, compared to $17.9 million, or $1.60 per share on a diluted basis, for the fourth quarter of 2010.

As of December 31, 2011, MicroStrategy had cash and cash equivalents of $199.6 million versus $174.1 million as of December 31, 2010, an increase of $25.5 million. As of December 31, 2011, MicroStrategy had 8,404,761 shares of class A common stock and 2,377,830 shares of class B common stock outstanding.

MicroStrategy Continues to Innovate in the Areas of Big Data, Mobile, Cloud and Social Intelligence Technologies:

In November 2011, MicroStrategy announced the general availability of Usher™, a free consumer friendly event management app linked to Facebook Events. Usher, available for the iPhone® on the Apple® iTunes® App Store, allows users to easily set up and manage an event from beginning to end with seamless integration with Facebook Events.

In addition, MicroStrategy upgraded Wisdom™ for Facebook. The new Wisdom application leverages Facebook profiles of Wisdom users and millions of their Facebook friends to deliver extraordinary insights derived from users’ Likes, interests, and preferences. Available at www.wisdom.com, or on iTunes at http://itunes.apple.com/us/app/wisdom-for-facebook/id455088890?ls=1&mt=8#, or through a user’s Facebook log in at: http://apps.facebook.com/wisdomapp, the free Wisdom for Facebook app allows users to segment Facebook information in a myriad of ways and discover an almanac of information on millions of topics.


Wisdom offers a new way for users to gain insights and discover trends derived from the wisdom of the masses. Pooled and anonymized, personal information is never revealed, but the knowledge is captured and available for all Wisdom users. Does Mitt Romney appeal more to people who live in urban or rural areas? What are key differences between Target and Walmart fans, or the Coke and Pepsi crowds? What books do people who like Fox News read, or those who like CNN? Now, putting the collective knowledge of millions to work for users, Wisdom has answers to these questions and so much more in the recently updated Wisdom for Facebook application.

According to Michael Saylor, MicroStrategy founder and CEO, “Wisdom for Facebook is a collective intelligence application that gives users a level of insight never before possible – powered by the Likes of millions of fellow Facebook users.”

For the consumer, Wisdom serves as a personal tool for actionable insight. Tap into the Wisdom Network and discover what’s hot, and what’s not. Single? Use Wisdom’s filtering capability to find the most popular single spots in your town. Looking for new music? Match your tastes with others to see which bands you might enjoy. Much more than a recommendation engine, Wisdom allows users to glean insights based on people with similar demographic, psychographic, and geographic attributes.

On the mobile front, MicroStrategy was rated the top Mobile BI offering out of 24 product offerings in the Howard Dresner Mobile BI Survey. According to the survey data, MicroStrategy ranks #1 overall among vendors offering Mobile BI, based on 25 criteria platform and feature capabilities. MicroStrategy’s mobile customers include such leading brands as GUESS?, Whole Foods Market, Herbalife, MetLife, Edmunds.com, eHarmony, and Sonic Automotive.

In addition, MicroStrategy attained AT&T Certified Solution status to deliver Mobile BI solutions. MicroStrategy passed a comprehensive suite of tests to become an official AT&T Industry and Mobility Alliance Program Partner. AT&T performed a full array of functionality, interoperability, performance, and usability tests on MicroStrategy’s software platform in granting MicroStrategy certification. MicroStrategy is the only business intelligence company in the AT&T partner eco-system to pass AT&T’s rigorous testing and partner vetting process.

New Customers and New Deals with Existing Customers in Q4 2011 Included:

AARP; ABN AMRO Bank N.V.; Aeroplan; AIG Global Asset Management Holdings Corp.; Amlin Plc; AutoTrader.com; Axfood IT AB; Banco Bilbao Vizcaya Argentaria, S.A. (BBVA); Bank of America; Bestway (Holdings) Limited; Biffa Waste Services; Bundesagentur für Arbeit; Cabela’s; Catalina Marketing Corporation; Centene Corporation; Centros Comerciales Carrefour S.A.; Citibank N.A.; Coca-Cola Refreshments USA, Inc.; Danone; Datacom Corporation; Delhaize America Shared Services Group; Dick’s Sporting Goods; DirecTV; Disney Consumer Products; Facebook; Forever 21; Gulf States Toyota, Inc.; Hallmark Cards; Heartland Payment Systems; Hewlett Packard Company; Hilton Worldwide; International Game Technology; J. A. Russell Ltd.; Japan Post Network, Ltd.; Kinross Gold Corporation; Korea Power Exchange; Kuwait National Petroleum Company; McAfee; McCain Foods; Motion Picture Industry Pension and Health Plans; Nagase & Co., Ltd.; NBCUniversal Media, LLC; Netflix; New York Life Retirement Plan Services; OptumRx – a UnitedHealth Group Company; PepsiCo; Pfizer Global Manufacturing; Polo Ralph Lauren Corporation; QVC Deutschland Inc. & Co.KG Rhein Studios; Ross Stores; Safeway; Sanofi Pasteur; Sony Online Entertainment, LLC; Standard & Poor’s Corporation; Standard Chartered Bank; Starwood Hotels & Resorts Worldwide; SWIFT; Swisscom AG; Target Corporation; Telenor Hungary; The Container Store; The Fresh Market; The Gap; Time Warner Cable; Tokai Kiosk Company; T-Systems International; UGIS Austria GmbH; Warner Bros. Technical Operations Inc.; and Yahoo!.


Examples of Customer Deals from Q4 2011:

Aeroplan

Aeroplan, Canada’s premier coalition loyalty program, is owned by Groupe Aeroplan Inc., doing business as Aimia, a global leader in loyalty management. Aeroplan has chosen to expand its MicroStrategy deployment to enable its personnel to analyze member information, track purchasing patterns, identify profiles of loyal members, and ensure that its loyalty program is closely aligned with members’ preferences. Aeroplan managers across various business areas, including marketing, partnership, finance, member services, analytics, and compliance, rely on MicroStrategy’s highly visual dashboards, scorecards, and content-rich reports to gain valuable insights into its customers. Aeroplan selected MicroStrategy for its ease of use, platform integration, and its ad hoc and user-friendly dashboard capabilities.

Forever 21

Forever 21, headquartered in Los Angeles, is a specialty retailer of women’s, men’s and children’s clothing and accessories, known for offering the hottest and most current fashion trends at a great value to consumers. Forever 21 selected MicroStrategy to perform financial analysis, store operations reporting, and merchandising analytics. The MicroStrategy-based reports and dashboards as well as its ad-hoc capabilities will enable end users to perform drill-down analyses, eliminating the reliance on IT to support the end user community with reporting needs. Forever 21 selected MicroStrategy for its ease-of-use, superior visualizations, mobile platform, and its depth of knowledge and leadership in the retail industry.

International Game Technology

International Game Technology (NYSE: IGT) is a global leader in the design, development and manufacture of gaming machines and systems products, as well as online and mobile gaming solutions for regulated markets. A new MicroStrategy customer, IGT has chosen MicroStrategy to build a secure extranet for its gaming clients that will provide casino managers with the ability to analyze live gaming machine data and make real-time decisions to adjust floor operations. IGT selected MicroStrategy for its ease-of-use, integrated architecture platform, and leadership in business intelligence and mobile technologies.

SWIFT

SWIFT, the Society for Worldwide Interbank Financial Telecommunication, is a member-owned cooperative that provides the communications platform, products and services to connect more than 9,700 financial institutions and corporations in 209 countries. SWIFT has chosen MicroStrategy as its enterprise business intelligence and analytics standard. MicroStrategy will anchor SWIFT’s BI service offering that is used by participating banking organizations, securities institutions, and corporate customers worldwide. At SWIFT headquarters, MicroStrategy will power the company’s BI system, allowing the global financial community to track and analyze interbank payment message traffic flowing through the SWIFT network. With MicroStrategy, banks and corporations will be able to monitor underlying value and currency flows, and better understand their position in the market, track sales performance, manage counterparty risk, and enhance operational efficiencies by identifying targets for cost savings. In selecting MicroStrategy over other business intelligence products, SWIFT cited superior platform architecture and product capabilities, as well as reliability, availability, high performance, and security.

T-Systems International

T-Systems International, based in Germany with over 47,600 employees worldwide and 2010 revenues at approximately EUR 9.1 billion, operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. Following a competitive tender, T-Systems was awarded a contract to establish a BI front end at Bundesagentur für Arbeit, the Federal Employment Agency in Germany. Together with MicroStrategy, T-Systems will lay the BI foundation at Bundesagentur für Arbeit and empower up to 100,000 internal and external end users with the ability to run 230,000 MicroStrategy-based reports and analytics against a 100-Terabyte data warehouse. The MicroStrategy BI platform will be leveraged by the Agency’s broad user community to build a unified portal, thereby increasing efficiencies and reducing operating costs.


About MicroStrategy Incorporated

Founded in 1989, MicroStrategy is a leading provider of enterprise software platforms for business intelligence (BI), mobile intelligence, and social intelligence applications. MicroStrategy’s BI platform enables leading organizations worldwide to analyze the vast amounts of data stored across their enterprises to make better business decisions. Companies choose MicroStrategy BI for its ease-of-use, sophisticated analytics, and superior data and user scalability. The MicroStrategy BI platform delivers actionable information to business users via the web and mobile devices. MicroStrategy’s mobile intelligence platform helps companies and organizations build, deploy, and maintain mobile apps across a range of solutions by embedding intelligence, transactions, and multimedia into apps. MicroStrategy’s social intelligence platform includes a number of applications that help enterprises harness the power of social networks for marketing and e-commerce, as well as a suite of free consumer friendly apps that use MicroStrategy’s enterprise technologies. MicroStrategy’s social intelligence platform helps companies leverage the value of social networks to better understand and engage their customers and fans. The MicroStrategy Cloud offering combines MicroStrategy and third-party software, hardware, and services to enable rapid, cost-effective development of hosted BI, mobile, and social applications. To learn more about MicroStrategy (Nasdaq: MSTR), visit www.microstrategy.com and follow us on Facebook (http://www.facebook.com/microstrategy) and Twitter (http://www.twitter.com/microstrategy).

MicroStrategy, MicroStrategy Business Intelligence Platform, MicroStrategy Cloud, MicroStrategy Mobile, Cloud Personal, Wisdom, and Usher 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, Alert, Cloud Personal, Wisdom for Facebook, MicroStrategy Wisdom, Emma and Usher; 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
December 31,
     Twelve Months  Ended
December 31,
 
     2011      2010      2011      2010  
     (unaudited)      (unaudited)      (unaudited)      (audited)  

Revenues

           

Product licenses

   $ 54,502       $ 47,653       $ 154,574       $ 126,717   

Product support and other services

     105,764         91,467         407,576         327,860   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

     160,266         139,120         562,150         454,577   
  

 

 

    

 

 

    

 

 

    

 

 

 

Cost of revenues

           

Product licenses

     2,260         1,896         8,774         7,637   

Product support and other services

     35,392         30,982         133,246         98,454   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total cost of revenues

     37,652         32,878         142,020         106,091   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     122,614         106,242         420,130         348,486   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating expenses

           

Sales and marketing

     69,125         50,982         243,029         165,732   

Research and development

     22,312         13,748         72,618         50,566   

General and administrative

     22,223         22,649         89,441         81,599   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     113,660         87,379         405,088         297,897   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations before financing and other income and income taxes

     8,954         18,863         15,042         50,589   
  

 

 

    

 

 

    

 

 

    

 

 

 

Financing and other income

           

Interest income, net

     60         80         199         389   

Gain on sale of investment

     —           —           3,371         —     

Other income, net

     666         806         688         3,982   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total financing and other income

     726         886         4,258         4,371   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations before income taxes

     9,680         19,749         19,300         54,960   

Provision for income taxes

     680         1,827         1,360         11,168   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 9,000       $ 17,922       $ 17,940       $ 43,792   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share (1)

   $ 0.84       $ 1.66       $ 1.67       $ 3.85   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares outstanding used in computing basic earnings per share

     10,767         10,802         10,719         11,378   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share (1)

   $ 0.81       $ 1.60       $ 1.62       $ 3.72   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares outstanding used in computing diluted earnings per share

     11,078         11,196         11,066         11,779   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(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  
     December 31,      December 31,     December 31,  
     2011      2010      2011     2010     2011      2010  

Revenues

               

Product licenses

   $ 54,502       $ 47,653       $ —        $ —        $ 54,502       $ 47,653   

Product support and other services

     99,467         85,753         —          —          99,467         85,753   

Angel.com services

     —           —           6,297        5,714        6,297         5,714   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total revenues

     153,969         133,406         6,297        5,714        160,266         139,120   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Cost of revenues

               

Product licenses

     2,260         1,896         —          —          2,260         1,896   

Product support and other services

     32,539         28,002         —          —          32,539         28,002   

Angel.com services

     —           —           2,853        2,980        2,853         2,980   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total cost of revenues

     34,799         29,898         2,853        2,980        37,652         32,878   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Gross profit

     119,170         103,508         3,444        2,734        122,614         106,242   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Operating expenses

               

Sales and marketing

     66,628         47,817         2,497        3,165        69,125         50,982   

Research and development

     20,946         12,823         1,366        925        22,312         13,748   

General and administrative

     21,288         21,975         935        674        22,223         22,649   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     108,862         82,615         4,798        4,764        113,660         87,379   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from operations before financing and other income and income taxes

     10,308         20,893         (1,354     (2,030     8,954         18,863   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Financing and other income (expense)

               

Interest income, net

     60         80         —          —          60         80   

Gain on sale of investment

     —           —           —          —          —           —     

Other income (expense), net

     709         771         (43     35        666         806   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total financing and other income (expense)

     769         851         (43     35        726         886   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from operations before income taxes

   $ 11,077       $ 21,744       $ (1,397   $ (1,995   $ 9,680       $ 19,749   

Provision for income taxes

               680         1,827   
            

 

 

    

 

 

 

Net income

             $ 9,000       $ 17,922   
            

 

 

    

 

 

 

Basic earnings per share

             $ 0.84       $ 1.66   
            

 

 

    

 

 

 

Weighted average shares outstanding used in computing basic earnings per share

               10,767         10,802   
            

 

 

    

 

 

 

Diluted earnings per share

             $ 0.81       $ 1.60   
            

 

 

    

 

 

 

Weighted average shares outstanding used in computing diluted earnings per share

               11,078         11,196   
            

 

 

    

 

 

 


MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

     Core BI Business      Angel.com     Consolidated  
     Twelve Months Ended      Twelve Months
Ended
    Twelve Months Ended  
     December 31,      December 31,     December 31,  
     2011      2010      2011     2010     2011      2010  

Revenues

               

Product licenses

   $ 154,574       $ 126,717       $ —        $ —        $ 154,574       $ 126,717   

Product support and other services

     382,594         309,371         —          —          382,594         309,371   

Angel.com services

     —           —           24,982        18,489        24,982         18,489   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total revenues

     537,168         436,088         24,982        18,489        562,150         454,577   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Cost of revenues

               

Product licenses

     8,774         7,637         —          —          8,774         7,637   

Product support and other services

     121,924         89,718         —          —          121,924         89,718   

Angel.com services

     —           —           11,322        8,736        11,322         8,736   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total cost of revenues

     130,698         97,355         11,322        8,736        142,020         106,091   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Gross profit

     406,470         338,733         13,660        9,753        420,130         348,486   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Operating expenses

               

Sales and marketing

     231,504         157,459         11,525        8,273        243,029         165,732   

Research and development

     67,863         47,239         4,755        3,327        72,618         50,566   

General and administrative

     86,237         79,390         3,204        2,209        89,441         81,599   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     385,604         284,088         19,484        13,809        405,088         297,897   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from operations before financing and other income and income taxes

     20,866         54,645         (5,824     (4,056     15,042         50,589   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Financing and other income (expense)

               

Interest income, net

     199         389         —          —          199         389   

Gain on sale of investment

     3,371         —           —          —          3,371         —     

Other income (expense), net

     764         3,956         (76     26        688         3,982   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total financing and other income (expense)

     4,334         4,345         (76     26        4,258         4,371   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from operations before income taxes

   $ 25,200       $ 58,990       $ (5,900   $ (4,030   $ 19,300       $ 54,960   

Provision for income taxes

               1,360         11,168   
            

 

 

    

 

 

 

Net income

             $ 17,940       $ 43,792   
            

 

 

    

 

 

 

Basic earnings per share

             $ 1.67       $ 3.85   
            

 

 

    

 

 

 

Weighted average shares outstanding used in computing basic earnings per share

               10,719         11,378   
            

 

 

    

 

 

 

Diluted earnings per share

             $ 1.62       $ 3.72   
            

 

 

    

 

 

 

Weighted average shares outstanding used in computing diluted earnings per share

               11,066         11,779   
            

 

 

    

 

 

 


MICROSTRATEGY INCORPORATED

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

     December 31,
2011
    December 31,
2010
 
     (unaudited)     (audited)  

Assets

    

Current assets

    

Cash and cash equivalents

   $ 199,634      $ 174,097   

Restricted cash and short-term investments

     289        284   

Accounts receivable, net

     94,723        82,056   

Prepaid expenses and other current assets

     17,043        26,751   

Deferred tax assets, net

     31,516        13,670   
  

 

 

   

 

 

 

Total current assets

     343,205        296,858   

Property and equipment, net

     95,311        65,033   

Capitalized software development costs, net

     7,031        9,059   

Deposits and other assets

     5,306        5,587   

Deferred tax assets, net

     2,998        5,029   
  

 

 

   

 

 

 

Total Assets

   $ 453,851      $ 381,566   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities

    

Accounts payable and accrued expenses

   $ 46,401      $ 36,683   

Accrued compensation and employee benefits

     68,308        60,201   

Deferred revenue and advance payments

     103,199        89,331   

Deferred tax liabilities

     485        355   
  

 

 

   

 

 

 

Total current liabilities

     218,393        186,570   

Deferred revenue and advance payments

     10,841        7,878   

Other long-term liabilities

     45,141        37,946   

Deferred tax liabilities

     10,498        —     
  

 

 

   

 

 

 

Total Liabilities

     284,873        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; 14,810 shares issued and 8,405 shares outstanding, and 14,351 shares issued and 7,946 shares outstanding, respectively

     15        14   

Class B common stock, $0.001 par value; 165,000 shares authorized; 2,378 and 2,694 shares issued and outstanding, respectively

     2        3   

Additional paid-in capital

     457,837        455,374   

Treasury stock, at cost; 6,405 shares

     (475,184     (475,184

Accumulated other comprehensive loss

     (2,052     (1,455

Retained earnings

     188,360        170,420   
  

 

 

   

 

 

 

Total Stockholders’ Equity

     168,978        149,172   
  

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 453,851      $ 381,566   
  

 

 

   

 

 

 


MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Twelve Months Ended
December 31,
 
     2011     2010  
     (unaudited)     (audited)  

Operating activities:

    

Net income

   $ 17,940      $ 43,792   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     18,526        12,799   

Bad debt expense

     1,485        3,436   

Deferred taxes

     (5,403     1,689   

Excess tax benefits from share-based compensation arrangements

     (4,507     (741

Gain on sale of investment

     (3,371     —     

Other, net

     —          70   

Changes in operating assets and liabilities:

    

Accounts receivable

     (15,141     (30,134

Prepaid expenses and other current assets

     7,115        (13,159

Deposits and other assets

     85        (2,353

Accounts payable and accrued expenses

     4,775        4,651   

Accrued compensation and employee benefits

     9,061        14,178   

Deferred revenue and advance payments

     18,498        16,285   

Other long-term liabilities

     7,244        25,312   
  

 

 

   

 

 

 

Net cash provided by operating activities

     56,307        75,825   

Investing activities:

    

Proceeds from sale of investment

     3,371        —     

Purchases of property and equipment

     (40,660     (16,289

Capitalized software development costs

     (5,907     (2,185

Insurance proceeds

     7,065        —     

(Increase) decrease in restricted cash and investments

     (51     1,047   
  

 

 

   

 

 

 

Net cash used in investing activities

     (36,182     (17,427

Financing activities:

    

Proceeds from sale of class A common stock under exercise of employee stock options

     2,463        1,154   

Excess tax benefits from share-based compensation arrangements

     4,507        741   

Purchases of treasury stock

     —          (108,993
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     6,970        (107,098

Effect of foreign exchange rate changes on cash and cash equivalents

     (1,558     (1,972
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     25,537        (50,672

Cash and cash equivalents, beginning of period

     174,097        224,769   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 199,634      $ 174,097