EX-99.1 2 d388915dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

Contact:

MicroStrategy Incorporated

Investor Relations

ir@microstrategy.com

(703) 848-8600

MicroStrategy Announces

Second Quarter 2012 Financial Results

Diluted Earnings Per Share of $0.65

TYSONS CORNER, Va., July 30, 2012 - MicroStrategy® Incorporated (Nasdaq: MSTR), a leading global provider of business intelligence (BI) software, today announced financial results for the three-month period ended June 30, 2012 (the second quarter of its 2012 fiscal year).

Second quarter 2012 revenues were $141.8 million versus $138.2 million for the second quarter of 2011, a 3% increase. Product licenses revenues for the second quarter of 2012 were $31.9 million versus $33.4 million for the second quarter of 2011, a 5% decrease. Product support and other services revenues for MicroStrategy’s core BI business for the second quarter of 2012 were $103.4 million versus $98.7 million for the second quarter of 2011, a 5% increase.

Operating expenses for the second quarter of 2012 were $95.7 million versus $100.1 million for the second quarter of 2011, a 4% decrease. The decrease in operating expenses was primarily driven by a reduction in sales and marketing expense. In addition, during the second quarter of 2012, MicroStrategy capitalized $5.1 million in costs associated with the development of its MicroStrategy 9.3 software versus $1.7 million in costs capitalized during the second quarter of 2011 associated with the development of its MicroStrategy 9.2.1 software.

Net income for the second quarter of 2012 was $7.3 million, or $0.65 per share on a diluted basis, compared to $2.9 million, or $0.26 per share on a diluted basis, for the second quarter of 2011.

As of June 30, 2012, MicroStrategy had cash and cash equivalents of $195.5 million versus $199.6 million as of December 31, 2011, a decrease of $4.1 million. As of June 30, 2012, MicroStrategy had 8,706,545 shares of class A common stock and 2,227,327 shares of class B common stock outstanding.

Innovations in Business Intelligence, Mobile Applications, Cloud-based BI, and Social Intelligence Technologies Continue to Set the Agenda for MicroStrategy

In the second quarter of 2012, MicroStrategy worked to provide visionary thought leadership, innovative new products, and superior service to its customers as they grappled with the challenges and opportunities posed by Big Data, Mobile Applications, Cloud-based BI, and Social Intelligence. In the second quarter, MicroStrategy unveiled the following new technologies:

 

   

MicroStrategy announced that it released a new version of MicroStrategy Mobile™ that delivers enhanced integration with Apple’s AirPlay® feature. This new capability extends MicroStrategy Mobile wirelessly onto conference room screens, encouraging spontaneous conversations rather


 

than static slide presentations. When MicroStrategy Mobile users “mirror” their business apps onto screens, the device becomes a data remote-control, letting the user discuss the data on the screen while controlling it wirelessly from an Apple device. For more information, view the product feature video: www.microstrategy.com/bettermeetings.

 

   

MicroStrategy announced the worldwide availability of Usher™ 1.1, a free event management app linked to Facebook events and groups. Users can download the app by going to http://www.usher.com and clicking on the link to Apple’s App Store™. A user with the Usher app deployed on the user’s iPhone can easily manage an event from beginning to end and invite guests from the user’s Facebook network.

Gartner Gives MicroStrategy an “Outstanding” Product Viability Rating in its 2012 “Critical Capabilities for Mobile BI” report

MicroStrategy announced that it had received an “Outstanding” product viability rating by Gartner in its “Critical Capabilities for Mobile BI” report, published April 10, 2012. According to Gartner, “Mobile business intelligence is growing fast in the corporate landscape, with many companies piloting or planning deployment initiatives. This research will help BI leaders understand the disparate capabilities available in the market and facilitate the selection of a mobile BI solution.” A copy of the Gartner report is available, compliments of MicroStrategy, at www.microstrategy.com/mobile/analyst-reviews.

MicroStrategy Unveils Innovations in Business Intelligence at MicroStrategy World 2012 Amsterdam

In July 2012, MicroStrategy unveiled innovations in business intelligence at MicroStrategy World 2012 Amsterdam, the Company’s global conference. The conference, which brought together some of the world’s foremost technology visionaries, featured the latest advances in self-service business intelligence and hosted the worldwide launch of “The Mobile Wave,” a book authored by MicroStrategy Chairman and CEO Michael Saylor and published June 26, 2012 by Perseus Books.

At MicroStrategy World Amsterdam, the Company unveiled MicroStrategy 9.3™, the latest version of its core business intelligence platform. MicroStrategy 9.3, which is expected to be generally available in Q3 2012, contains powerful new capabilities that enhance MicroStrategy Visual Insight for data exploration and dashboard creation, allow businesses to gain insights from Big Data, and incorporate advanced analytics from “R” — an open source programming language for statistical computing. MicroStrategy 9.3 empowers business people by providing them with the information they need to make better decisions and be consistently more productive.

Also at MicroStrategy World Amsterdam, MicroStrategy announced the beta release of MicroStrategy Cloud Express™, a SaaS-based BI solution that enables anyone – regardless of organizational size or technical skill – to automate publication of personalized, pixel-perfect reports and dashboards to any size group. The addition of MicroStrategy Cloud Express adds a new service level to the MicroStrategy Cloud™, which first became available in 2011 with Personal and Platform service options.

In addition, the Company announced the availability of MicroStrategy Wisdom Professional™ at MicroStrategy World Amsterdam. MicroStrategy Wisdom Professional is an analytical application that can explore a wide spectrum of data contained in Facebook about consumers, including their demographics, interests, activities, and preferences. MicroStrategy Wisdom Professional provides businesses with unique intelligence on the demographics, interests, and social graph of more than 12 million anonymous Facebook users. Businesses using MicroStrategy Wisdom Professional can uncover details about their fans as well as those of their competitors. To sign up for a one-month free trial of MicroStrategy Wisdom Professional, visit: www.microstrategy.com/wisdompro/.


In July 2012, MicroStrategy also held its second annual Social Media iCommerce Summit (SMICS) at Amsterdam’s RAI International Convention Center, running adjacent to MicroStrategy World 2012 Amsterdam. SMICS attendees were able to learn about innovative technologies from MicroStrategy in Social Intelligence and hear the views and experiences of industry luminaries at the cutting-edge of social media monetization. Digital strategists shared their perspectives on the future of social media and commerce, with a focus on how companies can best compete for consumer attention and relevance.

MicroStrategy Signs Multi-Year Global Brand Ambassador Partnership with Young Golfing Sensation Patrick Cantlay

Also in the second quarter of 2012, MicroStrategy announced that 20 year-old Patrick Cantlay, the world’s #1 ranked amateur golfer when he turned professional in mid-June 2012, became MicroStrategy’s first Global Brand Ambassador. Under the terms of the multi-year marketing partnership, Cantlay will represent MicroStrategy in a wide range of marketing and customer activities, and will wear MicroStrategy logos in premier locations on the front of his headwear and apparel during all professional tournament play and appearances.

Examples of Customer Deals from Q2 2012

Buenos Aires Department of the Treasury

The Buenos Aires Department of the Treasury (Ministerio de Hacienda de la Ciudad de Buenos Aires) has recently chosen to expand its deployment of the MicroStrategy Business Intelligence Platform™. The municipal department has been working with MicroStrategy to oversee the collection of revenues from various sources, including taxes, licenses, fees, and permits, which pay for numerous essential municipal services to Buenos Aires residents and businesses. The Department of the Treasury will integrate MicroStrategy with Sysphera’s Enterprise Management Suite to develop Web-based budgeting, planning, and forecasting processes that replace manual spreadsheet consolidations and also provide its user community with the reporting and analytical capabilities needed to deliver budget plans to the Buenos Aires City Congress.

Chipotle Mexican Grill 

Chipotle Mexican Grill, Inc. (NYSE: CMG), the national chain of burrito restaurants known for serving Food With Integrity, has selected MicroStrategy as its enterprise BI solution. Chipotle plans to deploy the MicroStrategy Business Intelligence Platform to its over 1,250 US-based restaurant locations and to its corporate staff of 500 users. Representative user groups will include Finance, Field Controllers, Marketing, Operations, Human Resources, Restaurant Management, and Field Management. Once deployed, Chipotle will use the platform to analyze and provide its field leaders with easy access to key performance metrics such as throughput, daily sales trends, and the impact of marketing campaigns. After an evaluation of other business intelligence products, Chipotle chose MicroStrategy for its platform’s ease-of-use, BI self-service approach, scalability, low total cost of ownership, and strong mobile BI offering. Chipotle also cited its strong business relationship with MicroStrategy as a key factor in their selection.

MassDiscounters (Game & Dion Wired)

Masstores, with headquarters in Durban, South Africa, is the second-largest distributor of consumer goods in Africa. Masstores has chosen to expand its MicroStrategy deployment to its employees in Finance, Marketing, Supply Chain, Merchandising, Logistics, and Store Operations. While MicroStrategy-based dashboards will provide high-level analytical insight to company executives, its operational reports will allow store managers and analysts to analyze company performance. MicroStrategy Visual Insight will empower Masstores’ employees to quickly and easily spot outliers, discover patterns, and uncover problem areas in the data using compelling visualizations. Masstores has chosen MicroStrategy for its powerful visualization capabilities, ease of use, and integrated business intelligence platform.


Novation 

Novation is the leading health care supply chain expertise and contracting company for the more than 65,000 members of VHA Inc. and UHC, two national health care alliances, Children’s Hospital Association, an alliance of the nation’s leading pediatric facilities, and Provista, LLC. Novation chose to expand its MicroStrategy deployment to provide its alliance members with powerful new visualization capabilities. With MicroStrategy Visual Insight, executives, purchasing analysts, and buyers are able to build their own dashboards without help from IT to answer their business questions in minutes. Novation cited MicroStrategy’s ease-of-use, speed, superior visualizations, scalability to handle big data, and analytical reporting capabilities as reasons for its continued deployment of MicroStrategy’s business intelligence platform.

About MicroStrategy Incorporated

Founded in 1989, MicroStrategy is a leading global 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 9.3, MicroStrategy Cloud, MicroStrategy Cloud Express, MicroStrategy Mobile, MicroStrategy Wisdom Professional, 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 9.3, MicroStrategy Cloud Express, and MicroStrategy Wisdom Professional; 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; 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
June 30,
    Six Months Ended
June 30,
 
     2012      2011     2012      2011  
     (unaudited)      (unaudited)     (unaudited)      (unaudited)  

Revenues

          

Product licenses

   $ 31,890       $ 33,430      $ 69,343       $ 60,810   

Product support and other services

     109,948         104,721        217,580         199,370   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total revenues

     141,838         138,151        286,923         260,180   
  

 

 

    

 

 

   

 

 

    

 

 

 

Cost of revenues

          

Product licenses

     982         2,322        3,128         4,230   

Product support and other services

     35,654         32,221        72,497         63,474   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total cost of revenues

     36,636         34,543        75,625         67,704   
  

 

 

    

 

 

   

 

 

    

 

 

 

Gross profit

     105,202         103,608        211,298         192,476   
  

 

 

    

 

 

   

 

 

    

 

 

 

Operating expenses

          

Sales and marketing

     51,117         60,942        108,546         112,453   

Research and development

     20,657         16,874        44,392         29,872   

General and administrative

     23,939         22,319        48,413         45,600   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total operating expenses

     95,713         100,135        201,351         187,925   
  

 

 

    

 

 

   

 

 

    

 

 

 

Income from operations before financing and other income and income taxes

     9,489         3,473        9,947         4,551   
  

 

 

    

 

 

   

 

 

    

 

 

 

Financing and other income (expense)

          

Interest income, net

     35         39        50         121   

Other income (expense), net

     1,011         (316     851         (947
  

 

 

    

 

 

   

 

 

    

 

 

 

Total financing and other income (expense)

     1,046         (277     901         (826
  

 

 

    

 

 

   

 

 

    

 

 

 

Income from operations before income taxes

     10,535         3,196        10,848         3,725   

Provision (benefit) for income taxes

     3,264         311        3,305         (294
  

 

 

    

 

 

   

 

 

    

 

 

 

Net income

   $ 7,271       $ 2,885      $ 7,543       $ 4,019   
  

 

 

    

 

 

   

 

 

    

 

 

 

Basic earnings per share (1)

   $ 0.67       $ 0.27      $ 0.70       $ 0.38   
  

 

 

    

 

 

   

 

 

    

 

 

 

Weighted average shares outstanding used in computing basic earnings per share

     10,875         10,709        10,841         10,690   
  

 

 

    

 

 

   

 

 

    

 

 

 

Diluted earnings per share (1)

   $ 0.65       $ 0.26      $ 0.68       $ 0.36   
  

 

 

    

 

 

   

 

 

    

 

 

 

Weighted average shares outstanding used in computing diluted earnings per share

     11,121         11,068        11,107         11,056   
  

 

 

    

 

 

   

 

 

    

 

 

 

 

(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
June 30,
    Three Months Ended
June  30,
    Three Months Ended
June  30,
 
     2012      2011     2012     2011     2012      2011  

Revenues

              

Product licenses

   $ 31,890       $ 33,430      $ —        $ —        $ 31,890       $ 33,430   

Product support and other services

     103,434         98,717        —          —          103,434         98,717   

Angel.com services

     —           —          6,514        6,004        6,514         6,004   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total revenues

     135,324         132,147        6,514        6,004        141,838         138,151   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cost of revenues

              

Product licenses

     982         2,322        —          —          982         2,322   

Product support and other services

     33,078         29,409        —          —          33,078         29,409   

Angel.com services

     —           —          2,576        2,812        2,576         2,812   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total cost of revenues

     34,060         31,731        2,576        2,812        36,636         34,543   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Gross profit

     101,264         100,416        3,938        3,192        105,202         103,608   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating expenses

              

Sales and marketing

     48,693         57,807        2,424        3,135        51,117         60,942   

Research and development

     19,017         15,779        1,640        1,095        20,657         16,874   

General and administrative

     23,067         21,617        872        702        23,939         22,319   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     90,777         95,203        4,936        4,932        95,713         100,135   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

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

     10,487         5,213        (998     (1,740     9,489         3,473   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Financing and other income (expense)

              

Interest income (expense), net

     37         39        (2     —          35         39   

Other income (expense), net

     1,000         (277     11        (39     1,011         (316
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total financing and other income (expense)

     1,037         (238     9        (39     1,046         (277
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from operations before income taxes

   $ 11,524       $ 4,975      $ (989   $ (1,779   $ 10,535       $ 3,196   

Provision for income taxes

              3,264         311   
           

 

 

    

 

 

 

Net income

            $ 7,271       $ 2,885   
           

 

 

    

 

 

 

Basic earnings per share

            $ 0.67       $ 0.27   
           

 

 

    

 

 

 

Weighted average shares outstanding used in computing basic earnings per share

   

           10,875         10,709   
           

 

 

    

 

 

 

Diluted earnings per share

            $ 0.65       $ 0.26   
           

 

 

    

 

 

 

Weighted average shares outstanding used in computing diluted earnings per share

   

           11,121         11,068   
           

 

 

    

 

 

 


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,  
     2012      2011     2012     2011     2012      2011  

Revenues

              

Product licenses

   $ 69,343       $ 60,810      $ —        $ —        $ 69,343       $ 60,810   

Product support and other services

     204,315         186,566        —          —          204,315         186,566   

Angel.com services

     —           —          13,265        12,804        13,265         12,804   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total revenues

     273,658         247,376        13,265        12,804        286,923         260,180   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cost of revenues

              

Product licenses

     3,128         4,230        —          —          3,128         4,230   

Product support and other services

     66,662         57,907        —          —          66,662         57,907   

Angel.com services

     —           —          5,835        5,567        5,835         5,567   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total cost of revenues

     69,790         62,137        5,835        5,567        75,625         67,704   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Gross profit

     203,868         185,239        7,430        7,237        211,298         192,476   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating expenses

              

Sales and marketing

     103,834         106,382        4,712        6,071        108,546         112,453   

Research and development

     41,191         27,773        3,201        2,099        44,392         29,872   

General and administrative

     46,732         44,156        1,681        1,444        48,413         45,600   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     191,757         178,311        9,594        9,614        201,351         187,925   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

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

     12,111         6,928        (2,164     (2,377     9,947         4,551   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Financing and other income (expense)

              

Interest income (expense), net

     52         121        (2     —          50         121   

Other income (expense), net

     876         (870     (25     (77     851         (947
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total financing and other income (expense)

     928         (749     (27     (77     901         (826
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from operations before income taxes

   $ 13,039       $ 6,179      $ (2,191   $ (2,454   $ 10,848       $ 3,725   

Provision (benefit) for income taxes

              3,305         (294
           

 

 

    

 

 

 

Net income

            $ 7,543       $ 4,019   
           

 

 

    

 

 

 

Basic earnings per share

            $ 0.70       $ 0.38   
           

 

 

    

 

 

 

Weighted average shares outstanding used in computing basic earnings per share

   

           10,841         10,690   
           

 

 

    

 

 

 

Diluted earnings per share

            $ 0.68       $ 0.36   
           

 

 

    

 

 

 

Weighted average shares outstanding used in computing diluted earnings per share

   

           11,107         11,056   
           

 

 

    

 

 

 


MICROSTRATEGY INCORPORATED

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

     June 30,     December 31,  
     2012     2011*  
     (unaudited)        

Assets

    

Current assets

    

Cash and cash equivalents

   $ 195,540      $ 199,634   

Restricted cash and short-term investments

     247        289   

Accounts receivable, net

     78,893        94,723   

Prepaid expenses and other current assets

     18,476        17,043   

Deferred tax assets, net

     21,740        31,516   
  

 

 

   

 

 

 

Total current assets

     314,896        343,205   

Property and equipment, net

     102,227        95,311   

Capitalized software development costs, net

     9,425        7,031   

Deposits and other assets

     5,038        5,306   

Deferred tax assets, net

     2,731        2,998   
  

 

 

   

 

 

 

Total Assets

   $ 434,317      $ 453,851   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities

    

Accounts payable and accrued expenses

   $ 31,816      $ 46,401   

Accrued compensation and employee benefits

     56,293        68,308   

Deferred revenue and advance payments

     105,523        103,199   

Deferred tax liabilities

     184        485   
  

 

 

   

 

 

 

Total current liabilities

     193,816        218,393   

Deferred revenue and advance payments

     10,361        10,841   

Other long-term liabilities

     44,329        45,141   

Deferred tax liabilities

     6,572        10,498   
  

 

 

   

 

 

 

Total Liabilities

     255,078        284,873   
  

 

 

   

 

 

 

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;

    

15,112 shares issued and 8,707 shares outstanding, and 14,810 shares issued and 8,405 shares outstanding, respectively

     15        15   

Class B common stock, $0.001 par value; 165,000 shares authorized; 2,227 and 2,378 shares issued and outstanding, respectively

     2        2   

Additional paid-in capital

     460,784        457,837   

Treasury stock, at cost; 6,405 shares

     (475,184     (475,184

Accumulated other comprehensive loss

     (2,281     (2,052

Retained earnings

     195,903        188,360   
  

 

 

   

 

 

 

Total Stockholders' Equity

     179,239        168,978   
  

 

 

   

 

 

 

Total Liabilities and Stockholders' Equity

   $ 434,317      $ 453,851   
  

 

 

   

 

 

 

 

* Derived from audited financial statements.


MICROSTRATEGY INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Six Months Ended  
     June 30,  
     2012     2011  
     (unaudited)     (unaudited)  

Operating activities:

    

Net income

   $ 7,543      $ 4,019   

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

    

Depreciation and amortization

     11,812        7,851   

Bad debt expense

     3,075        266   

Deferred taxes

     5,612        (2,852

Excess tax benefits from share-based compensation arrangements

     —          (1,854

Changes in operating assets and liabilities:

    

Accounts receivable

     12,071        13,149   

Prepaid expenses and other current assets

     (4,460     5,043   

Deposits and other assets

     214        62   

Accounts payable and accrued expenses

     (6,897     (2,106

Accrued compensation and employee benefits

     (11,523     (9,799

Deferred revenue and advance payments

     3,200        11,831   

Other long-term liabilities

     (798     5,856   
  

 

 

   

 

 

 

Net cash provided by operating activities

     19,849        31,466   

Investing activities:

    

Purchases of property and equipment

     (23,942     (18,806

Capitalized software development costs

     (5,050     (5,432

Insurance proceeds

     3,206        5,675   

Decrease (increase) in restricted cash and investments

     42        (167
  

 

 

   

 

 

 

Net cash used in investing activities

     (25,744     (18,730

Financing activities:

    

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

     2,947        1,554   

Excess tax benefits from share-based compensation arrangements

     —          1,854   
  

 

 

   

 

 

 

Net cash provided by financing activities

     2,947        3,408   

Effect of foreign exchange rate changes on cash and cash equivalents

     (1,146     2,784   
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (4,094     18,928   

Cash and cash equivalents, beginning of period

     199,634        174,097   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 195,540      $ 193,025