10/18/99 - MICROSTRATEGY REPORTS 102% REVENUE GROWTH FOR THIRD QUARTER; NET INCOME INCREASED 97% OVER CORRESPONDING QUARTER LAST YEAR
VIENNA, Va., Oct 18, 1999 /PRNewswire via COMTEX/ -- MicroStrategy(R) Incorporated (Nasdaq: MSTR), a leading worldwide provider of Intelligent E-Business(TM) software, today announced revenues of $54.6 million for the third quarter ended September 30, 1999. This represents a 102% increase over the corresponding quarter in the previous year. Net income for the three months ended September 30, 1999 was $3.8 million, or $0.09 per share on a diluted basis, representing a 97% increase over the corresponding quarter last year. Revenues for the nine months ended September 30, 1999 were $136.0 million, representing a 92% increase over the corresponding period a year ago. Net income for the current nine month period was $8.9 million, or $0.21 per share on a diluted basis, representing a 160% increase over the same period a year ago.
"We are pleased to announce our 15th consecutive quarter of increased revenues," said Michael J. Saylor, president and CEO of MicroStrategy Incorporated. "During the quarter several companies turned to MicroStrategy for their e-business initiatives, as we launched an Intelligent E-Business Platform(TM) designed to address the e-marketing and e-CRM needs of the largest enterprises. MicroStrategy continued its quest to develop Intelligent E-Business solutions that empower corporations and their customers with insight to develop and execute effective strategies. With our growing customer base, scalable technology, strong balance sheet, and worldwide sales & marketing presence, we are well positioned to take advantage of opportunities in the Intelligent E-Business market."
Quarterly Highlights The following highlights were announced or occurred during MicroStrategy's third quarter of 1999:
* MicroStrategy acquired 60 new customers across a broad range of
industries, increasing its current worldwide customer base to
approximately 844.
* The company entered into a $52.5 million relationship with NCR
Corporation. The agreement includes an investment by both companies in
technology infrastructure, integration, and marketing -- spanning e-
business, business intelligence, and customer-centric data warehouse
applications.
* The company entered into significant relationships with J.C. Penney,
snap.com, University of Miami, Sato Travel, US Office Products and RL
Polk & Company.
* Strategy.com(TM), the world's first Personal Intelligence Network(TM),
went live with its first channel, Strategy.com Finance. Strategy.com
Finance enables consumers to receive personalized alerts via email,
pager or phone about market conditions, their individual portfolio
performance, and alerts about changes in analyst recommendations, in
addition to many other services. Offering everything from intra-day
stock movement alerts via pager to weekly portfolio updates in Microsoft
Excel, Strategy.com Finance guides users' investment decisions with
information they need -- exactly when, where and how they need it.
* Strategy.com added 16 affiliates to its network, bringing the total
number of potential eyeballs on the network to more than 18 million.
* MicroStrategy launched MicroStrategy 6, an Intelligent E-Business(TM)
Platform that empowers organizations to provide real time news driven
transactions to anyone, anytime, anywhere. MicroStrategy 6 provides
organizations with insights that enable them to manage operations,
analyze marketing campaigns, and create and deliver targeted messages to
customers through touch points such as the web, email, pager, and phone.
* MicroStrategy launched MicroStrategy Telecaster(TM), part of the
MicroStrategy 6 Platform. MicroStrategy Telecaster is the first product
that proactively delivers important information directly from a data
warehouse to a telephone, enabling organizations to initiate fully
personalized and interactive dialogs with their customers.
* MicroStrategy launched MicroStrategy InfoCenter(TM), part of the
MicroStrategy 6 Intelligent E-Business Platform. MicroStrategy
InfoCenter is a scalable web portal that allows consumers to access,
subscribe, personalize and act upon business insight via a central
gateway to information.
* MicroStrategy expanded its worldwide operation into South America with
the opening of an office in Brazil.
* MicroStrategy entered into agreements with 13 system integration,
application development and platform partners during the quarter,
increasing the number of partners supporting the company's Intelligent
E-Business Platform to approximately 211.
The summary of financial highlights below compares the 1999 third quarter results to the same period last year.
MicroStrategy will hold a conference call today at 5:00 p.m. (EDT). Investors can access the call by dialing 1-800-659-1081. A replay of the conference call can be accessed for 48 hours by dialing 1-800-252-6030 and dialing access code 4951859 after 7:00 p.m. (EDT) on October 18, 1999 until 7:00 p.m. (EDT) October 20, 1999.
About MicroStrategy Incorporated MicroStrategy is a leading worldwide provider of Intelligent E- Business(TM) software and related services. MicroStrategy's product line enables both proactive and interactive delivery of information from large- scale databases, providing Global 2000 enterprises a platform for developing solutions that deliver insight and intelligence to their enterprise, supply- chain, and customers.
MicroStrategy's platform enables users to query and analyze the most detailed, transaction-level databases, turning data into business intelligence. In addition to supporting internal enterprise users, MicroStrategy's platform delivers critical business information beyond corporate boundaries to customers, partners and supply chain constituencies through a broad range of pull and push technology such as the Internet, e- mail, telephones, pagers and other wireless communications devices. MicroStrategy's platform is ideal for developing e-business solutions that are personalized and proactive, and that reach millions of users. MicroStrategy also offers a comprehensive set of consulting, training and support services for its customers and partners.
MicroStrategy has over 840 customers across such diverse industries as retail, telecommunications, finance, insurance, healthcare, pharmaceuticals and consumer packaged goods. Representative MicroStrategy customers include American Express Travel Services, CVS Pharmacy, Harris Teeter, IMS America, Kmart, MCI WorldCom, Merck-Medco, Nike, NetRadio and Ralston Purina. MicroStrategy has also enterom the forward-looking statements. Factors that could cause or contribute to such differences include 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, 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
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenues
Product licenses $38,219 $16,949 $92,400 $47,476
Product support 16,336 10,065 43,577 23,223
Total revenues 54,555 27,014 135,977 70,699
Cost of Revenues
Product licenses 844 586 1,927 1,676
Product support 9,056 4,658 23,571 11,934
Total cost of revenues 9,900 5,244 25,498 13,610
Gross profit 44,655 21,770 110,479 57,089
Operating Expenses
Sales and marketing 24,376 12,926 62,295 35,759
Research and development 8,433 3,218 19,581 8,086
General and administrative 6,315 2,941 15,958 8,104
Total operating expenses 39,124 19,085 97,834 51,949
Income from operations 5,531 2,685 12,645 5,140
Interest income 596 551 1,771 682
Interest expense (2) (120) (145) (621)
Other (expense) income, net (6) (7) 26 (31)
Income before taxes 6,119 3,109 14,297 5,170
Provision for income taxes 2,325 1,181 5,433 1,758
Net income $3,794 $1,928 $8,864 $3,412
Earnings per share (basic) $0.10 $0.05 $0.24 $0.10
Weighted average
outstanding shares
(basic) 38,361,338 35,543,737 37,710,230 32,771,485
Earnings per share
(diluted) $0.09 $0.05 $0.21 $0.09
Weighted average
outstanding shares
(diluted) 42,737,259 40,881,728 42,002,352 37,936,672
Pro forma information
(unaudited) (1):
Pro forma net income $3,205
Pro forma earnings
per share (basic) $0.10
Pro forma earnings
per share (diluted) $0.08
(1) Presented on a Pro forma basis, which reflects Federal and state income taxes based on estimated applicable tax rates as if the company had been a subchapter C corporation for the nine months ended September 30, 1998.
MICROSTRATEGY INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
September 30, December 31,
1999 1998
Assets (unaudited) (audited)
Current assets
Cash and cash equivalents $22,380 $27,491
Short-term investments 21,404 --
Accounts receivable, net 54,587 33,054
Prepaid expenses and other current assets 5,004 2,914
Total current assets 103,375 63,459
Property and equipment, net 34,601 13,773
Other long-term receivables -- 2,700
Deposits and other assets 2,296 2,757
Total Assets $140,272 $82,689
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and other $15,890 $11,904
Accrued compensation and employee benefits 7,593 7,356
Deferred revenue 8,012 10,732
Dividend notes payable -- 5,000
Total current liabilities 31,495 34,992
Deferred revenue 3,284 746
Other long-term liabilities 671 671
Total Liabilities 35,450 36,409
Stockholders' Equity:
Preferred stock; $.001 par value;
5,000 shares authorized; no shares
issued or outstanding -- --
Class A Common Stock; $.001 par value;
100,000 shares authorized; 9,388 and 5,052
shares issued and outstanding, respectively 9 5
Class B Common Stock; $.001 par value;
100,000 shares authorized; 29,055 and 30,633
shares issued and outstanding, respectively 29 31
Additional paid-in capital 91,736 42,219
Deferred compensation (1,755) (2,098)
Accumulated other comprehensive income 710 894
Accumulated earnings 14,093 5,229
Total Liabilities & Stockholders' Equity $140,272 $82,689
SOURCE MicroStrategy Incorporated
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Mark Lynch, Chief Financial Officer of MicroStrategy
Incorporated, 703-848-8600 or mlynch@microstrategy.com
WEB PAGE: microstrategy.com
GEOGRAPHY: Virginia
INDUSTRY CODE: CPR
SUBJECT CODE: ERN
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