Diluted Earnings Per Share of $0.81 MCLEAN, Va., July 30
/PRNewswire-FirstCall/ -- MicroStrategy Incorporated (NASDAQ:MSTR),
a leading worldwide provider of business intelligence software,
today announced financial results for the three-month period ended
June 30, 2009 (the second quarter of its 2009 fiscal year). Second
quarter 2009 revenues were $87.8 million versus $88.9 million for
the second quarter of 2008. Product licenses revenues for the
second quarter of 2009 were $20.5 million versus $21.1 million for
the second quarter of 2008. Product support and other services
revenues for MicroStrategy's core business intelligence (BI)
business in the second quarter of 2009 were $64.1 million versus
$65.1 million for the second quarter of 2008. Operating expenses
for the second quarter of 2009 were $55.3 million versus $57.7
million for the second quarter of 2008. Income from continuing
operations before financing and other income and income taxes for
the second quarter of 2009 was $16.5 million, or 19% of revenue,
versus $15.1 million, or 17% of revenue, for the second quarter of
2008. Net income for the second quarter of 2009 was $10.0 million,
or $0.81 per share on a diluted basis, compared to $8.1 million, or
$0.66 per share on a diluted basis, for the second quarter of 2008.
For the second quarter of 2009, MicroStrategy's effective tax rate
on income from continuing operations was 34% compared to 49% for
the second quarter of 2008. The higher effective tax rate in 2008
was primarily the result of an adjustment that was made to the
Company's deferred tax asset for state net operating losses and, to
a lesser extent, net losses in certain foreign subsidiaries for
which the Company was not able to recognize a tax benefit for
financial reporting purposes in the second quarter of 2008. As of
June 30, 2009, MicroStrategy had cash and cash equivalents of
approximately $176.2 million versus $122.9 million as of December
31, 2008, an increase of $53.3 million. As of June 30, 2009,
MicroStrategy had 9,128,789 shares of class A common stock and
2,770,244 shares of class B common stock outstanding. New Customers
and New Deals with Existing Customers in Q2 2009 Included: Bayer
HealthCare Pharmaceuticals; Bell Canada; Burlington Coat Factory;
Cingular Wireless; Citigroup Fund Services Canada, Inc.;
Cryptologic, Inc.; CSC Holdings; Danier Leather Inc.; Doctor's
Associates, Inc.; Emory Healthcare, Inc.; Family Dollar, Inc.;
Fannie Mae; Freddie Mac; Genworth Financial Mortgage Insurance
Company Canada; Heartland Payment Systems; Herbalife International
of America, Inc.; Interstate Batteries; Jabil Circuit Inc.; La
Capitale Assurances Generales; LinkedIn Corporation; McDonald's
Corporation; Mercury Insurance Company; Meredith Corporation;
National Institutes of Health (NIH); Netflix; Nu Skin Enterprises,
Inc.; Paramount Pictures Corporation; Petco Animal Supplies, Inc.;
Ross Stores, Inc.; Saint Elizabeth Health Care; Silverton Casino,
LLC; Sony Media Software and Services; The Sherwin-Williams
Company; Time Warner Cable; Toys R Us, Inc.; Tuesday Morning Inc.;
University of Miami; U.S. Department of Defense; U.S. House of
Representatives; U.S. Department of Education; U.S. Department of
Energy; Wilbur-Ellis Company; Wyeth Consumer Healthcare (f/k/a
Whitehall-Robins) Examples of Customer Deals from Q2 2009:
Burlington Coat Factory Warehouse Corporation Burlington Coat
Factory Warehouse Corporation, a nationally recognized retailer
with 433 stores in 44 states, has expanded its base of
MicroStrategy licenses utilized for merchandising reporting and
analytics. Burlington Coat Factory uses MicroStrategy for reporting
and analysis on merchandising metrics. MicroStrategy teamed with
QuantiSense to provide dashboards and reporting for Burlington Coat
Factory with an end-to-end solution for their merchandising
business intelligence requirements. Heartland Payment Systems
Heartland Payment Systems is the nation's fifth largest payments
processor, providing card processing, payroll, check management,
and other payments solutions. A new MicroStrategy customer,
Heartland selected MicroStrategy to enhance reporting and analysis
capabilities for its merchants, giving them greater insights into
their businesses. After conducting an extensive evaluation of BI
products, MicroStrategy was selected because of its integrated
platform, scalability for large volumes of data, and easy-to-use
reporting capabilities for Heartland's diverse user population.
Saint Elizabeth Health Care Saint Elizabeth Health Care (SEHC)
recently deployed MicroStrategy to provide employees with the
information they need and the tools required to use information to
make better decisions. With additional software licenses, SEHC will
rely on MicroStrategy's Dynamic Enterprise Dashboards and reporting
capabilities to monitor key performance indicators tied to the
organization's corporate strategies. MicroStrategy's dashboards and
reports will provide vital insights that can help SEHC to enhance
decision making and operational performance. SEHC is a Canadian
not-for-profit charitable organization with a team of approximately
4,000 health professionals that deliver 3.8 million home care
visits annually. The University of Miami The University of Miami
recently expanded its use of MicroStrategy to gain greater insight
into its academic environment and student population. End users
across the various schools and colleges are able to access 12 BI
applications, and rely on intuitive reports to examine current
student reporting, fundraising, equality administration, financial
aid, human resources, purchasing, student admissions, and student
employment information. MicroStrategy provides reports relating to
the current student body and application pool to help University of
Miami users make important decisions on admissions acceptances and
enrollment questions. MicroStrategy Reporting Suite Announced: In
the second quarter of 2009, MicroStrategy announced a free
reporting software package for departmental BI applications.
MicroStrategy Reporting Suite enables companies to use
MicroStrategy's integrated BI platform to develop and deploy
premium, Web-based reporting applications, at no cost.
MicroStrategy has eliminated cost and time impediments for
departments and workgroups to initiate new reporting applications.
Business users can simply visit the MicroStrategy Reporting Suite
Web site, http://www.microstrategy.com/freereportingsoftware,
download the free software, and begin building their reporting
applications, all in the same day. MicroStrategy's easy-to-use
reporting software enables business users to quickly create the
reports they need to gain critical insights into business data and
make timely, analytically-based decisions. Users can view data in
detailed tabular grid reports, graph data to analyze information
quickly, drill-down to investigate root causes, make ad hoc
queries, manage business performance with arithmetic and
statistical metrics, and export data to Excel and PDF. When
reporting requirements expand, companies can purchase licenses for
more advanced report presentation, more interactivity, and
additional BI users. MicroStrategy Reporting Suite gives companies
an easy entry point for initiating small, departmental reporting
applications, along with a seamless path to build and expand BI
deployments without creating independent silos of BI. Some
departmental reporting tools create individual islands of BI that
cannot be integrated into the larger BI system, resulting in
inconsistent data and undermining the system's credibility. With
MicroStrategy, organizations can efficiently merge departmental
applications into a cohesive BI environment to ensure data
consistency across the enterprise. The MicroStrategy Reporting
Suite includes the following: -- Up to 100 named user licenses of
the MicroStrategy Reporting Suite: MicroStrategy Intelligence
Server and MicroStrategy Web Reporter - with a 1 CPU limit -- Two
named user licenses of development software: MicroStrategy Desktop
and MicroStrategy Architect -- Two named user licenses of many of
MicroStrategy's most popular products and services: MicroStrategy
Web Analyst and Professional, MicroStrategy Mobile, MicroStrategy
Office, MicroStrategy Report Services, MicroStrategy Distribution
Services, and MicroStrategy OLAP Services -- Free online support,
which includes access to MicroStrategy's extensive online
searchable knowledge repository, online community forum, video
guides, and online education -- Free e-mail support for 60 days for
two named support liaisons to interact one-on-one with
MicroStrategy Technical Support representatives via e-mail -- A
Quick Start Guide and access to product documentation To learn
more, visit http://www.microstrategy.com/freereportingsoftware.
MicroStrategy Announces Availability of BI Reports and Dashboards
on the Amazon Kindle DX: MicroStrategy-based grid reports, graph
reports, operational reports, scorecards, and dashboards can be
stored and viewed on the Kindle DX in PDF format for enhanced
productivity while out of the office. The Kindle DX's large screen
enables users to review and analyze detailed business data, ranging
from a complex financial performance dashboard to a 100-page
operational report. Users can also easily share reports and
dashboards with others during business meetings. By storing
business intelligence reports on the Kindle DX, users no longer
need to print out and carry stacks of reports with them when they
travel. The large memory capacity of the Kindle DX, with more than
3GB of usable storage, enables users to store tens of thousands of
BI reports and dashboards. Users simply archive the reports after
viewing them and retrieve the reports when needed. MicroStrategy
reports can be sent via e-mail to the Kindle DX, enabling users to
monitor business performance while away from the office. With
MicroStrategy, Kindle DX users can receive reports on a scheduled
basis, and set up e-mail alerts triggered by important business
indicators that inform them of time-sensitive issues. Users can
also download business reports and documents directly to the Kindle
DX at their convenience. First BI Platform Vendor to Support the
New Data Mining Standard, PMML 4.0: MicroStrategy has enhanced its
predictive analytics capabilities with support for the newest
version of the data mining industry's leading standard, PMML 4.0.
The Predictive Model Markup Language (PMML) standard is developed
by Data Mining Group (DMG), an independent consortium of over two
dozen leading technology companies, including MicroStrategy. The
PMML standard describes how predictive models work and it makes the
models easy to share across the organization for improved
decision-making. Data mining is an organic part of the
MicroStrategy architecture that enables users to discover hidden
patterns and predictive information in the data through standard
enterprise reports and dashboards. While BI provides deep insight
into historical data, data mining uses this information to help
companies forecast future events. With MicroStrategy, users can
easily deploy complex data mining models and include the results of
these models in a variety of BI applications, such as call center
analyses, customer relationship management, and financial budgeting
and forecasting. An active member of DMG since 2004, MicroStrategy
has provided guidance and leadership in developing the PMML
standard and continues to maintain its support for open platform
standards, cross-vendor interoperability, and high data integrity.
Along with existing data mining models, MicroStrategy 9 includes
new capabilities, such as the Time Series model, which is used to
forecast results along a given timeline, and the Association Rules
model, which is helpful for discovering relationships in databases
and recommending products that customers are most likely to
purchase. MicroStrategy Hosts Informational Events in India: During
July 2009, MicroStrategy is hosting a series of informational
events in seven cities in India. The events will provide an
overview of MicroStrategy's latest software release, MicroStrategy
9, and how it can help companies improve decision-making, increase
productivity, streamline operations, and enhance business
performance. Nine dinner events will be held between July 14, 2009
and July 31, 2009. About MicroStrategy Incorporated Founded in
1989, MicroStrategy is a global leader in business intelligence
(BI) technology. MicroStrategy provides integrated reporting,
analysis, and monitoring software that helps leading organizations
worldwide make better business decisions every day. Companies
choose MicroStrategy for its advanced technical capabilities,
sophisticated analytics, and superior data and user scalability.
More information about MicroStrategy (NASDAQ:MSTR) is available at
http://www.microstrategy.com/. MicroStrategy, MicroStrategy 9,
MicroStrategy Report Services, MicroStrategy Dynamic Enterprise
Dashboards, MicroStrategy Reporting Suite, MicroStrategy
Intelligence Server, MicroStrategy Business Intelligence Platform,
MicroStrategy Architect, MicroStrategy Web, MicroStrategy OLAP
Provider, MicroStrategy Office, MicroStrategy Mobile, and
MicroStrategy Distribution Services 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 ability of the
Company to implement and achieve widespread customer acceptance of
its MicroStrategy 9 software on a timely basis; the Company's
ability to recognize deferred revenue through delivery of products
or satisfactory performance of services; continued acceptance of
the Company's products in the marketplace; the timing of
significant orders; delays in the Company's ability to develop or
ship new products; market acceptance of 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. Contact: MicroStrategy Incorporated Investor
Relations (703) 848-8600 MICROSTRATEGY INCORPORATED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share data)
Three Months Ended Six Months Ended June 30, June 30, --------
-------- 2009 2008 2009 2008 ---- ---- ---- ---- (unaudited)
(unaudited) (unaudited) (unaudited) Revenues Product licenses
$20,483 $21,052 $37,454 $43,179 Product support and other services
67,276 67,804 130,546 131,581 ------ ------ ------- ------- Total
revenues 87,759 88,856 168,000 174,760 ------ ------ -------
------- Cost of Revenues Product licenses 1,980 461 2,576 1,020
Product support and other services 13,957 15,648 28,022 29,594
------ ------ ------ ------ Total cost of revenues 15,937 16,109
30,598 30,614 ------ ------ ------ ------ Gross profit 71,822
72,747 137,402 144,146 ------ ------ ------- ------- Operating
Expenses Sales and marketing 31,357 34,484 61,887 64,172 Research
and development 11,168 8,203 19,007 18,527 General and
administrative 12,800 15,001 27,144 32,311 ------ ------ ------
------ Total operating expenses 55,325 57,688 108,038 115,010
------ ------ ------- ------- Income from continuing operations
before financing and other income and income taxes 16,497 15,059
29,364 29,136 ------ ------ ------ ------ Financing and Other
(Expense) Income Interest income, net 251 660 395 1,458 Other
expense, net (1,740) (102) (1,204) (963) ------ ---- ------ ----
Total financing and other (expense) income (1,489) 558 (809) 495
------ --- ---- --- Income from continuing operations before income
taxes 15,008 15,617 28,555 29,631 Provision for income taxes 5,056
7,719 9,943 12,772 ----- ----- ----- ------ Income from continuing
operations 9,952 7,898 18,612 16,859 Discontinued operations: Gain
from sale of discontinued operations, net of tax provision ($69 and
$11,190, respectively) 15 - 14,437 - Income (loss) from
discontinued operations, net of tax provision (benefit) ($0 and
$197, for the three months ended, respectively, and ($54) and $123
for the six months ended, respectively) - 228 (107) (435) --- ---
---- ---- Discontinued operations, net of tax 15 228 14,330 (435)
-- --- ------ ---- ------ ------ ------- ------- Net Income $9,967
$8,126 $32,942 $16,424 ------ ------ ------- ------- Basic earnings
(loss) per share (1): From continuing operations $0.84 $0.66 $1.57
$1.42 From discontinued operations $- $0.02 $1.20 $(0.04) -- -----
----- ------ Basic earnings per share $0.84 $0.68 $2.77 $1.38 -----
----- ----- ----- Weighted average shares outstanding used in
computing basic earnings per share 11,895 11,870 11,893 11,897
------ ------ ------ ------ Diluted earnings (loss) per share (1):
From continuing operations $0.81 $0.64 $1.52 $1.36 From
discontinued operations $- $0.02 $1.17 $(0.03) -- ----- -----
------ Diluted earnings per share $0.81 $0.66 $2.69 $1.33 -----
----- ----- ----- Weighted average shares outstanding used in
computing diluted earnings per share 12,256 12,324 12,237 12,351
------ ------ ------ ------ (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 Three Months Three Months Ended Ended Ended June 30,
June 30, June 30, -------- -------- -------- 2009 2008 2009 2008
2009 2008 ---- ---- ---- ---- ---- ---- Revenues Product licenses
$20,483 $21,052 $- $- $20,483 $21,052 Product support and other
services 64,118 65,064 - - 64,118 65,064 Angel.com telephony
services - - 3,158 2,740 3,158 2,740 --- --- ----- ----- -----
----- Total revenues 84,601 86,116 3,158 2,740 87,759 88,856 ------
------ ----- ----- ------ ------ Cost of Revenues Product licenses
1,980 461 - - 1,980 461 Product support and other services 12,705
15,208 - - 12,705 15,208 Angel.com telephony services - - 1,252 440
1,252 440 --- --- ----- --- ----- --- Total cost of revenues 14,685
15,669 1,252 440 15,937 16,109 ------ ------ ----- --- ------
------ Gross profit 69,916 70,447 1,906 2,300 71,822 72,747 ------
------ ----- ----- ------ ------ Operating Expenses Sales and
marketing 30,289 32,063 1,068 2,421 31,357 34,484 Research and
development 10,312 7,259 856 944 11,168 8,203 General and
administrative 12,353 14,911 447 90(a) 12,800 15,001 ------ ------
--- -- ------ ------ Total operating expenses 52,954 54,233 2,371
3,455 55,325 57,688 ------ ------ ----- ----- ------ ------ Income
(loss) from continuing operations before financing and other income
and income taxes 16,962 16,214 (465) (1,155) 16,497 15,059 ------
------ ---- ------ ------ ------ Financing and Other (Expense)
Income Interest income, net 251 660 - - 251 660 Other expense, net
(1,740) (102) - - (1,740) (102) ------ ---- --- --- ------ ----
Total financing and other (expense) income (1,489) 558 - - (1,489)
558 ------ --- --- --- ------ --- Income (loss) from continuing
operations before income taxes $15,473 $16,772 $(465) $(1,155)
$15,008 $15,617 Provision for income taxes 5,056 7,719 ----- -----
Income from continuing operations 9,952 7,898 Discontinued
operations: Gain from sale of discontinued operations, net of tax
15 - Income from discontinued operations, net of tax - 228 --- ---
Discontinued operations, net of tax 15 228 ------ ------ Net income
$9,967 $8,126 ====== ====== Basic earnings per share: From
continuing operations $0.84 $0.66 From discontinued operations $-
$0.02 -- ----- Basic earnings per share $0.84 $0.68 ----- -----
Diluted earnings per share: From continuing operations $0.81 $0.64
From discontinued operations $- $0.02 -- ----- Diluted earnings per
share $0.81 $0.66 ----- ----- Basic weighted average shares
outstanding 11,895 11,870 ====== ====== Diluted weighted average
shares outstanding 12,256 12,324 ====== ====== (a) An insignificant
amount of general and administrative services is provided to the
Angel.com business unit by MicroStrategy's core business
operations. MICROSTRATEGY INCORPORATED CONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands, except per share data) (unaudited) Core
BI Business Angel.com Consolidated ---------------- ---------
------------ Six Months Six Months Six Months Ended Ended Ended
June 30, June 30, June 30, -------- -------- -------- 2009 2008
2009 2008 2009 2008 ---- ---- ---- ---- ---- ---- Revenues Product
licenses $37,454 $43,179 $- $- $37,454 $43,179 Product support and
other services 124,730 126,476 - - 124,730 126,476 Angel.com
telephony services - - 5,816 5,105 5,816 5,105 --- --- ----- -----
----- ----- Total revenues 162,184 169,655 5,816 5,105 168,000
174,760 ------- ------- ----- ----- ------- ------- Cost of
Revenues Product licenses 2,576 1,020 - - 2,576 1,020 Product
support and services revenues 25,732 28,694 - - 25,732 28,694
Angel.com telephony services - - 2,290 900 2,290 900 --- --- -----
--- ----- --- Total cost of revenues 28,308 29,714 2,290 900 30,598
30,614 ------ ------ ----- --- ------ ------ Gross profit 133,876
139,941 3,526 4,205 137,402 144,146 ------- ------- ----- -----
------- ------- Operating Expenses Sales and marketing 59,648
60,195 2,239 3,977 61,887 64,172 Research and development 17,139
16,995 1,868 1,532 19,007 18,527 General and administrative 26,260
32,161 884 150(a) 27,144 32,311 ------ ------ --- ---- ------
------ Total operating expenses 103,047 109,351 4,991 5,659 108,038
115,010 ------- ------- ----- ----- ------- ------- Income (loss)
from continuing operations before financing and other income and
income taxes 30,829 30,590 (1,465) (1,454) 29,364 29,136 ------
------ ------ ------ ------ ------ Financing and Other (Expense)
Income Interest income, net 395 1,458 - - 395 1,458 Other expense,
net (1,204) (963) - - (1,204) (963) ------ ---- --- --- ------ ----
Total financing and other (expense) income (809) 495 - - (809) 495
---- --- --- --- ---- --- Income (loss) from continuing operations
before income taxes $30,020 $31,085 $(1,465) $(1,454) $28,555
$29,631 Provision for income taxes 9,943 12,772 ----- ------ Income
from continuing operations 18,612 16,859 Discontinued operations:
Gain from sale of discontinued operations, net of tax 14,437 - Loss
from discontinued operations, net of tax (107) (435) ---- ----
Discontinued operations, net of tax 14,330 (435) ------- -------
Net income $32,942 $16,424 ======= ======= Basic earnings (loss)
per share: From continuing operations $1.57 $1.42 From discontinued
operations $1.20 $(0.04) ----- ------ Basic earnings per share
$2.77 $1.38 ----- ----- Diluted earnings (loss) per share: From
continuing operations $1.52 $1.36 From discontinued operations
$1.17 $(0.03) ----- ------ Diluted earnings per share $2.69 $1.33
----- ----- Basic weighted average shares outstanding 11,893 11,897
====== ====== Diluted weighted average shares outstanding 12,237
12,351 ====== ====== (a) An insignificant amount of general and
administrative services is provided to the Angel.com business unit
by MicroStrategy's core business operations. MICROSTRATEGY
INCORPORATED CONSOLIDATED BALANCE SHEETS (in thousands, except per
share data) June 30, December 31, 2009 2008 ---- ---- Assets
(unaudited) (audited) Current assets Cash and cash equivalents
$176,167 $122,915 Restricted cash and investments 1,523 619
Accounts receivable, net 41,604 49,670 Prepaid expenses and other
current assets 8,053 9,518 Deferred tax assets, net 15,975 26,743
Assets held-for-sale - 4,964 --- ----- Total current assets 243,322
214,429 Property and equipment, net 7,799 8,978 Capitalized
software development cost, net 16,890 14,823 Deposits and other
assets 35,518 36,804 Deferred tax assets, net 10,737 17,105 ------
------ Total Assets $314,266 $292,139 -------- -------- Liabilities
and Stockholders' Equity Current liabilities Accounts payable and
accrued expenses $21,708 $27,697 Accrued compensation and employee
benefits 33,284 42,634 Deferred revenue and advance payments 75,258
66,495 Deferred tax liabilities 524 - Liabilities held-for-sale -
6,325 --- ----- Total current liabilities 130,774 143,151 Deferred
revenue and advance payments 3,013 1,679 Other long-term
liabilities 9,744 9,268 ----- ----- Total Liabilities 143,531
154,098 ------- ------- 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; 14,176 shares issued and 9,129 shares
outstanding, and 14,167 shares issued and 9,120 shares outstanding,
respectively 14 14 Class B common stock, $0.001 par value; 165,000
shares authorized; 2,770 issued and outstanding 3 3 Additional
paid-in capital 451,162 450,953 Treasury stock, at cost; 5,047
shares (366,191) (366,191) Accumulated other comprehensive income
1,014 1,471 Retained earnings 84,733 51,791 ------ ------ Total
Stockholders' Equity 170,735 138,041 ------- ------- Total
Liabilities and Stockholders' Equity $314,266 $292,139 --------
-------- MICROSTRATEGY INCORPORATED CONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands) (unaudited) Six Months Ended June 30, --------
2009 2008 ---- ---- Operating activities: Net income $32,942
$16,424 Plus: (Income) loss from discontinued operations, net
(14,330) 435 ------- --- Income from continuing operations 18,612
16,859 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 4,761 3,102 Bad
debt expense 484 561 Deferred taxes 7,917 8,539 Stock-based
compensation - 45 Excess tax benefits from stock-based payment
arrangements - (178) Other, net (9) 32 Changes in operating assets
and liabilities: Accounts receivable 6,485 10,656 Prepaid expenses
and other current assets 1,495 (1,142) Deposits and other assets
137 (334) Accounts payable and accrued expenses, compensation and
employee benefits (15,777) (6,091) Deferred revenue and advance
payments 9,692 8,345 Other long-term liabilities 464 1,198 ---
----- Net cash provided by operating activities from continuing
operations 34,261 41,592 Net cash (used in) provided by operating
activities from discontinued operations (472) 472 ---- --- Net cash
provided by operating activities 33,789 42,064 ------ ------
Investing activities: Purchases of property and equipment (1,362)
(1,770) Capitalized software development costs (4,218) (2,862)
Decrease in restricted cash and investments 238 758 --- --- Net
cash used in investing activities from continuing operations
(5,342) (3,874) Net cash provided by (used in) investing activities
from discontinued operations 24,546 (84) ------ --- Net cash
provided by (used in) investing activities 19,204 (3,958) ------
------ Financing activities: Distribution to Alarm.com minority
shareholders (60) - Proceeds from sale of class A common stock
under exercise of employee stock options 261 1,986 Excess tax
benefits from stock-based payment arrangements - 178 Purchases of
treasury stock - (8,387) --- ------ Net cash provided by (used in)
financing activities from continuing operations 201 (6,223) Net
cash provided by financing activities from discontinued operations
- - --- --- Net cash provided by (used in) financing activities 201
(6,223) Effect of foreign exchange rate changes on cash and cash
equivalents 58 2,526 -- ----- Net increase in cash and cash
equivalents from continuing operations 53,252 34,409 Cash and cash
equivalents, beginning of period 122,915 85,194 ------- ------ Cash
and cash equivalents, end of period $176,167 $119,603 ========
======== DATASOURCE: MicroStrategy Incorporated CONTACT:
MicroStrategy Incorporated Investor Relations, +1-703-848-8600, Web
Site: http://www.microstrategy.com/
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