Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MICROSTRATEGY Inc | d249825d8k.htm |
Exhibit 99.1
Contact:
MicroStrategy Incorporated
Investor Relations
ir@microstrategy.com
(703) 848-8600
MicroStrategy Announces
Third Quarter 2011 Financial Results
Record $141.7 Million in Total Revenues
TYSONS CORNER, Va., October 31, 2011 - MicroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, today announced financial results for the three-month period ended September 30, 2011 (the third quarter of its 2011 fiscal year).
Third quarter 2011 revenues were $141.7 million, the highest quarterly total revenues in Company history, versus $114.5 million for the third quarter of 2010, a 24% increase. Product licenses revenues for the third quarter of 2011 were $39.3 million versus $32.2 million for the third quarter of 2010, a 22% increase. Product support and other services revenues for MicroStrategy’s core business intelligence (BI) business in the third quarter of 2011 were $96.6 million versus $77.8 million for the third quarter of 2010, a 24% increase.
Operating expenses for the third quarter of 2011 were $103.5 million versus $77.5 million for the third quarter of 2010, a 34% 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 third quarter of 2011 was $4.9 million, or $0.44 per share on a diluted basis, compared to $7.4 million, or $0.63 per share on a diluted basis, for the third quarter of 2010. Third quarter 2011 net income included a $3.4 million pre-tax gain on the sale of an equity investment.
For the third quarter of 2011, MicroStrategy’s effective tax rate was 17% compared to 10% for the third quarter of 2010. The higher effective tax rate in the third quarter of 2011 was primarily attributable to certain discrete adjustments that were recorded in the third quarter of 2010, partially offset by stronger results outside the U.S. in the third quarter of 2011 compared to the same period in 2010.
As of September 30, 2011, MicroStrategy had cash and cash equivalents of $186.3 million versus $174.1 million as of December 31, 2010, an increase of $12.2 million. As of September 30, 2011, MicroStrategy had 8,268,079 shares of class A common stock and 2,492,830 shares of class B common stock outstanding.
MicroStrategy Expands Launch of New Mobile, Cloud and Social Media Technologies:
In September 2011, MicroStrategy unveiled several new technologies.
| • | MicroStrategy announced the release of Cloud Personal™, a free cloud-based business intelligence service. Cloud Personal combines the Company’s latest technology innovations – MicroStrategy Cloud™, MicroStrategy Visual Insight™, and MicroStrategy Mobile™ – enabling users to easily upload data to the MicroStrategy Cloud, analyze it via rich visualizations, and share powerful insights with colleagues or friends as a mobile application or web browser dashboard. |
| • | MicroStrategy introduced Wisdom™ for Facebook, a free application that is now available worldwide for both the iPhone® and iPad® on the Apple® iTunes® App Store, as well as in a web-based Facebook app format. Wisdom organizes your Facebook content and provides insights into your network of Facebook friends, so you do not have to contend with information overload and can easily learn from the collective experience of your friends. |
| • | MicroStrategy also introduced MicroStrategy Wisdom™, a cloud-based application that injects social intelligence into the Facebook applications of corporations. |
| • | MicroStrategy additionally announced Emma™, a new marketplace for Facebook users. Emma enhances the concept of free classifieds by attaching Facebook credentials to classified listings. Because everyone in the Emma community has a Facebook profile, they can trade with more confidence, whether they are buying or selling products and services or engaging in social transactions such as finding a roommate or rideshare. |
The launch of these new offerings followed the release in July 2011 of several other innovative MicroStrategy technologies designed to enable companies to capitalize on the big data, mobile, cloud, and social media trends that are transforming the way commerce is conducted.
| • | The Company announced the general availability of MicroStrategy 9.2.1. This latest release of the MicroStrategy Business Intelligence Platform™ features a new product, MicroStrategy Transaction Services™, 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 also announced the general availability of MicroStrategy Cloud™, 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. |
| • | 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. |
| • | 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. |
New Customers and New Deals with Existing Customers in Q3 2011 Included:
Activision; Aeropostale; AIG Global Asset Management Holdings Corp.; Banco Espirito Santo; Bank Of America; Belgacom Group; CareSource Management Group Co.; Comcast Entertainment Group; CSC
Holdings; Dana Farber Cancer Institute; Dell Computer Corporation; Deutsche Bank Securities; Diageo North America; Electronic Arts; Endo Pharmaceuticals; ESPN; Google; Grange Insurance; Groupon.com; Hannover Rückversicherung AG; Kassenärztliche Bundesvereinigung; Kohl’s Department Stores; MacIntosh Retail Group NV; McDonald’s Corporation; MedStar Health; Mercer (US) Inc.; Metropolitan Life Insurance Co.; Navteq; Nedbank Ltd; Netflix; Olympus Corporation; Pacific Sunwear; PF Chang’s China Bistro; Polo Ralph Lauren Corporation; Radio Shack Corporation; Rogers Communications Partnership; Salesforce.com; Securitas Direct AB; Shionogi & Co., Ltd.; Social Security Administration; Speedway SuperAmerica LLC; Standard & Poor’s Corporation; Staples, Inc.; Starwood Hotels & Resorts Worldwide, Inc.; TARP Worldwide; and US Capitol Police.
Examples of Customer Deals from Q3 2011:
Pacific Sunwear
Pacific Sunwear, with headquarters in Anaheim, California, is a leading specialty retailer with more than 800 stores in 50 states and Puerto Rico. Pacific Sunwear employees, including executives, merchants and planners, rely on MicroStrategy dashboards to analyze key merchandise sales and inventory metrics, and make real-time business decisions. A recent expansion of MicroStrategy licenses will allow Pacific Sunwear to upgrade to 64-bit functionality to improve performance, scalability, and capacity to support their growing BI environment. Ad-hoc capabilities will also enable end-users to perform drill-down analyses, eliminating the reliance on IT to support the end-user community with reporting needs. Pacific Sunwear selected MicroStrategy for its ease-of-use, superior visualizations and analytical reporting capabilities, as well as its outstanding scalability for big data.
CareSource Management Group Co.
CareSource, based in Dayton, Ohio, is a major not-for-profit, public-sector managed healthcare company that offers services to roughly 870,000 members in Ohio and Michigan. A new MicroStrategy customer, CareSource has chosen the MicroStrategy platform to measure service quality within its provider network. CareSource plans to develop a reporting iPhone app built on the MicroStrategy Mobile platform that will allow employees to remotely access key Healthcare Effectiveness Data and Information Set (HEDIS) quality measures in a visual, intuitive way. The mobile app will leverage HEDIS measures, which are used by more than 90 percent of America’s health plans to measure performance on important dimensions of care and service. MicroStrategy was chosen following an extensive analysis of competitive business intelligence products.
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 “friendly” consumer 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, MicroStrategy Transaction Services, Wisdom, MicroStrategy Wisdom and Emma 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, and Emma; 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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Revenues |
||||||||||||||||
| Product licenses |
$ | 39,262 | $ | 32,180 | $ | 100,072 | $ | 79,064 | ||||||||
| Product support and other services |
102,442 | 82,350 | 301,812 | 236,393 | ||||||||||||
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|||||||||
| Total revenues |
141,704 | 114,530 | 401,884 | 315,457 | ||||||||||||
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|
|
|||||||||
| Cost of Revenues |
||||||||||||||||
| Product licenses |
2,284 | 1,966 | 6,514 | 5,741 | ||||||||||||
| Product support and other services |
34,380 | 25,274 | 97,854 | 67,472 | ||||||||||||
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|
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|||||||||
| Total cost of revenues |
36,664 | 27,240 | 104,368 | 73,213 | ||||||||||||
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|
|||||||||
| Gross profit |
105,040 | 87,290 | 297,516 | 242,244 | ||||||||||||
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|||||||||
| Operating Expenses |
||||||||||||||||
| Sales and marketing |
61,451 | 42,002 | 173,904 | 114,750 | ||||||||||||
| Research and development |
20,434 | 13,675 | 50,306 | 36,818 | ||||||||||||
| General and administrative |
21,618 | 21,816 | 67,218 | 58,950 | ||||||||||||
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| Total operating expenses |
103,503 | 77,493 | 291,428 | 210,518 | ||||||||||||
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| Income from operations before financing and other income and income taxes |
1,537 | 9,797 | 6,088 | 31,726 | ||||||||||||
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| Financing and Other Income (Expense) |
||||||||||||||||
| Interest income, net |
18 | 192 | 139 | 309 | ||||||||||||
| Gain on sale of investment |
3,371 | — | 3,371 | — | ||||||||||||
| Other income (expense), net |
969 | (1,817 | ) | 22 | 3,176 | |||||||||||
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|||||||||
| Total financing and other income (expense) |
4,358 | (1,625 | ) | 3,532 | 3,485 | |||||||||||
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|||||||||
| Income from operations before income taxes |
5,895 | 8,172 | 9,620 | 35,211 | ||||||||||||
| Provision for income taxes |
974 | 821 | 680 | 9,341 | ||||||||||||
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| Net income |
$ | 4,921 | $ | 7,351 | $ | 8,940 | $ | 25,870 | ||||||||
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| Basic earnings per share (1) |
$ | 0.46 | $ | 0.66 | $ | 0.84 | $ | 2.24 | ||||||||
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| Weighted average shares outstanding used in computing basic earnings per share |
10,729 | 11,206 | 10,703 | 11,572 | ||||||||||||
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| Diluted earnings per share (1) |
$ | 0.44 | $ | 0.63 | $ | 0.81 | $ | 2.16 | ||||||||
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| Weighted average shares outstanding used in computing diluted earnings per share |
11,072 | 11,603 | 11,061 |
|
11,976 |
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| (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 | ||||||||||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
| Revenues |
||||||||||||||||||||||||
| Product licenses |
$ | 39,262 | $ | 32,180 | $ | — | $ | — | $ | 39,262 | $ | 32,180 | ||||||||||||
| Product support and other services |
96,561 | 77,753 | — | — | 96,561 | 77,753 | ||||||||||||||||||
| Angel.com services |
— | — | 5,881 | 4,597 | 5,881 | 4,597 | ||||||||||||||||||
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| Total revenues |
135,823 | 109,933 | 5,881 | 4,597 | 141,704 | 114,530 | ||||||||||||||||||
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| Cost of Revenues |
||||||||||||||||||||||||
| Product licenses |
2,284 | 1,966 | — | — | 2,284 | 1,966 | ||||||||||||||||||
| Product support and other services |
31,478 | 23,162 | — | — | 31,478 | 23,162 | ||||||||||||||||||
| Angel.com services |
— | — | 2,902 | 2,112 | 2,902 | 2,112 | ||||||||||||||||||
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| Total cost of revenues |
33,762 | 25,128 | 2,902 | 2,112 | 36,664 | 27,240 | ||||||||||||||||||
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| Gross profit |
102,061 | 84,805 | 2,979 | 2,485 | 105,040 | 87,290 | ||||||||||||||||||
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| Operating Expenses |
||||||||||||||||||||||||
| Sales and marketing |
58,494 | 39,979 | 2,957 | 2,023 | 61,451 | 42,002 | ||||||||||||||||||
| Research and development |
19,144 | 12,773 | 1,290 | 902 | 20,434 | 13,675 | ||||||||||||||||||
| General and administrative |
20,793 | 21,223 | 825 | 593 | 21,618 | 21,816 | ||||||||||||||||||
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| Total operating expenses |
98,431 | 73,975 | 5,072 | 3,518 | 103,503 | 77,493 | ||||||||||||||||||
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| Income (loss) from operations before financing and other income and income taxes |
3,630 | 10,830 | (2,093 | ) | (1,033 | ) | 1,537 | 9,797 | ||||||||||||||||
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| Financing and Other Income (Expense) |
||||||||||||||||||||||||
| Interest income, net |
18 | 192 | — | — | 18 | 192 | ||||||||||||||||||
| Gain on sale of investment |
3,371 | — | — | — | 3,371 | — | ||||||||||||||||||
| Other income (expense), net |
925 | (1,785 | ) | 44 | (32 | ) | 969 | (1,817 | ) | |||||||||||||||
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| Total financing and other income (expense) |
4,314 | (1,593 | ) | 44 | (32 | ) | 4,358 | (1,625 | ) | |||||||||||||||
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| Income (loss) from operations before income taxes |
$ | 7,944 | $ | 9,237 | $ | (2,049 | ) | $ | (1,065 | ) | $ | 5,895 | $ | 8,172 | ||||||||||
| Provision for income taxes |
974 | 821 | ||||||||||||||||||||||
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| Net income |
$ | 4,921 | $ | 7,351 | ||||||||||||||||||||
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| Basic earnings per share |
$ | 0.46 | $ | 0.66 | ||||||||||||||||||||
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| Weighted average shares outstanding used in computing basic earnings per share |
10,729 | 11,206 | ||||||||||||||||||||||
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| Diluted earnings per share |
$ | 0.44 | $ | 0.63 | ||||||||||||||||||||
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| Weighted average shares outstanding used in computing diluted earnings per share |
11,072 | 11,603 | ||||||||||||||||||||||
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MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Core BI Business | Angel.com | Consolidated | ||||||||||||||||||||||
| Nine Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
| Revenues |
||||||||||||||||||||||||
| Product licenses |
$ | 100,072 | $ | 79,064 | $ | — | $ | — | $ | 100,072 | $ | 79,064 | ||||||||||||
| Product support and other services |
283,127 | 223,618 | — | — | 283,127 | 223,618 | ||||||||||||||||||
| Angel.com services |
— | — | 18,685 | 12,775 | 18,685 | 12,775 | ||||||||||||||||||
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| Total revenues |
383,199 | 302,682 | 18,685 | 12,775 | 401,884 | 315,457 | ||||||||||||||||||
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| Cost of Revenues |
||||||||||||||||||||||||
| Product licenses |
6,514 | 5,741 | — | — | 6,514 | 5,741 | ||||||||||||||||||
| Product support and other services |
89,385 | 61,716 | — | — | 89,385 | 61,716 | ||||||||||||||||||
| Angel.com services |
— | — | 8,469 | 5,756 | 8,469 | 5,756 | ||||||||||||||||||
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| Total cost of revenues |
95,899 | 67,457 | 8,469 | 5,756 | 104,368 | 73,213 | ||||||||||||||||||
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| Gross profit |
287,300 | 235,225 | 10,216 | 7,019 | 297,516 | 242,244 | ||||||||||||||||||
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| Operating Expenses |
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| Sales and marketing |
164,876 | 109,642 | 9,028 | 5,108 | 173,904 | 114,750 | ||||||||||||||||||
| Research and development |
46,917 | 34,416 | 3,389 | 2,402 | 50,306 | 36,818 | ||||||||||||||||||
| General and administrative |
64,949 | 57,415 | 2,269 | 1,535 | 67,218 | 58,950 | ||||||||||||||||||
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| Total operating expenses |
276,742 | 201,473 | 14,686 | 9,045 | 291,428 | 210,518 | ||||||||||||||||||
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| Income (loss) from operations before financing and other income and income taxes |
10,558 | 33,752 | (4,470 | ) | (2,026 | ) | 6,088 | 31,726 | ||||||||||||||||
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| Financing and Other Income (Expense) |
||||||||||||||||||||||||
| Interest income, net |
139 | 309 | — | — | 139 | 309 | ||||||||||||||||||
| Gain on sale of investment |
3,371 | — | — | — | 3,371 | — | ||||||||||||||||||
| Other income (expense), net |
55 | 3,186 | (33 | ) | (10 | ) | 22 | 3,176 | ||||||||||||||||
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| Total financing and other income (expense) |
3,565 | 3,495 | (33 | ) | (10 | ) | 3,532 | 3,485 | ||||||||||||||||
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| Income (loss) from operations before income taxes |
$ | 14,123 | $ | 37,247 | $ | (4,503 | ) | $ | (2,036 | ) | $ | 9,620 | $ | 35,211 | ||||||||||
| Provision for income taxes |
680 | 9,341 | ||||||||||||||||||||||
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| Net income |
$ | 8,940 | $ | 25,870 | ||||||||||||||||||||
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| Basic earnings per share |
$ | 0.84 | $ | 2.24 | ||||||||||||||||||||
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| Weighted average shares outstanding used in computing basic earnings per share |
10,703 | 11,572 | ||||||||||||||||||||||
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| Diluted earnings per share |
$ | 0.81 | $ | 2.16 | ||||||||||||||||||||
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| Weighted average shares outstanding used in computing diluted earnings per share |
11,061 | 11,976 | ||||||||||||||||||||||
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MICROSTRATEGY INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| September 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (unaudited) | (audited) | |||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ | 186,300 | $ | 174,097 | ||||
| Restricted cash and short-term investments |
413 | 284 | ||||||
| Accounts receivable, net |
77,084 | 82,056 | ||||||
| Prepaid expenses and other current assets |
19,956 | 26,751 | ||||||
| Deferred tax assets, net |
26,640 | 13,670 | ||||||
|
|
|
|
|
|||||
| Total current assets |
310,393 | 296,858 | ||||||
| Property and equipment, net |
87,497 | 65,033 | ||||||
| Capitalized software development costs, net |
9,188 | 9,059 | ||||||
| Deposits and other assets |
5,807 | 5,587 | ||||||
| Deferred tax assets, net |
2,309 | 5,029 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 415,194 | $ | 381,566 | ||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Current liabilities |
||||||||
| Accounts payable and accrued expenses |
$ | 40,754 | $ | 36,683 | ||||
| Accrued compensation and employee benefits |
54,875 | 60,201 | ||||||
| Deferred revenue and advance payments |
97,452 | 89,331 | ||||||
| Deferred tax liabilities |
371 | 355 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
193,452 | 186,570 | ||||||
| Deferred revenue and advance payments |
11,039 | 7,878 | ||||||
| Other long-term liabilities |
42,992 | 37,946 | ||||||
| Deferred tax liabilities |
3,733 | — | ||||||
|
|
|
|
|
|||||
| Total Liabilities |
251,216 | 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; 14,673 shares issued and 8,268 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 |
461,469 | 455,374 | ||||||
| Treasury stock, at cost; 6,405 shares |
(475,184 | ) | (475,184 | ) | ||||
| Accumulated other comprehensive loss |
(1,684 | ) | (1,455 | ) | ||||
| Retained earnings |
179,360 | 170,420 | ||||||
|
|
|
|
|
|||||
| Total Stockholders’ Equity |
163,978 | 149,172 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Stockholders’ Equity |
$ | 415,194 | $ | 381,566 | ||||
|
|
|
|
|
|||||
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Nine Months Ended September 30, |
||||||||
| 2011 | 2010 | |||||||
| Operating activities: |
||||||||
| Net income |
$ | 8,940 | $ | 25,870 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
12,905 | 9,313 | ||||||
| Bad debt expense |
941 | 2,429 | ||||||
| Deferred taxes |
(2,734 | ) | (509 | ) | ||||
| Excess tax benefits from share-based compensation arrangements |
(3,791 | ) | (115 | ) | ||||
| Gain on sale of investment |
(3,371 | ) | — | |||||
| Other, net |
— | 26 | ||||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
4,389 | (4,180 | ) | |||||
| Prepaid expenses and other current assets |
4,960 | (2,615 | ) | |||||
| Deposits and other assets |
(316 | ) | (707 | ) | ||||
| Accounts payable and accrued expenses |
(762 | ) | 1,462 | |||||
| Accrued compensation and employee benefits |
(5,261 | ) | 1,243 | |||||
| Deferred revenue and advance payments |
11,411 | 12,922 | ||||||
| Other long-term liabilities |
5,065 | 10,799 | ||||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
32,376 | 55,938 | ||||||
| Investing activities: |
||||||||
| Proceeds from sale of investment |
3,371 | — | ||||||
| Purchases of property and equipment |
(29,128 | ) | (11,817 | ) | ||||
| Capitalized software development costs |
(5,907 | ) | (2,185 | ) | ||||
| Insurance proceeds |
5,675 | — | ||||||
| (Increase) decrease in restricted cash and investments |
(161 | ) | 248 | |||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(26,150 | ) | (13,754 | ) | ||||
| Financing activities: |
||||||||
| Proceeds from sale of class A common stock under exercise of employee stock options |
2,207 | 240 | ||||||
| Excess tax benefits from share-based compensation arrangements |
3,791 | 115 | ||||||
| Purchases of treasury stock |
— | (81,618 | ) | |||||
|
|
|
|
|
|||||
| Net cash provided by (used in) financing activities |
5,998 | (81,263 | ) | |||||
| Effect of foreign exchange rate changes on cash and cash equivalents |
(21 | ) | (1,388 | ) | ||||
|
|
|
|
|
|||||
| Net increase (decrease) in cash and cash equivalents |
12,203 | (40,467 | ) | |||||
| Cash and cash equivalents, beginning of period |
174,097 | 224,769 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents, end of period |
$ | 186,300 | $ | 184,302 | ||||
|
|
|
|
|
|||||