MICROSTRATEGY INCORPORATED 
By TYSONS CORNER, Va., Jan. 27, 2014 /PRNewswire/ -- MicroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide provider of enterprise software platforms, today announced financial results for the three-month period ended December 31, 2013 (the fourth quarter of its 2013 fiscal year).
Fourth quarter 2013 revenues were $165.9 million versus $156.0 million for the fourth quarter of 2012, a 6% increase. Product licenses and subscription services revenues for the fourth quarter of 2013 were $58.8 million versus $48.1 million for the fourth quarter of 2012, a 22% increase. Product support revenues for the fourth quarter of 2013 were $72.5 million versus $68.8 million for the fourth quarter of 2012, a 5% increase. Other services revenues for the fourth quarter of 2013 were $34.6 million versus $39.1 million for the fourth quarter of 2012, a 12% decrease.
Operating expenses for the fourth quarter of 2013 were $114.4 million versus $105.9 million for the fourth quarter of 2012, an 8% increase.
Income from continuing operations for the fourth quarter of 2013 was $18.5 million, as compared to income from continuing operations of $13.7 million for the fourth quarter of 2012, a 35% increase. Net income for the fourth quarter of 2013 was $16.1 million, or $1.43 per share on a diluted basis, as compared to net income of $8.2 million, or $0.73 per share on a diluted basis, for the fourth quarter of 2012.
Non-GAAP income from continuing operations, which excludes share-based compensation expense, was $20.2 million for the fourth quarter of 2013, as compared to non-GAAP income from continuing operations of $13.7 million for the fourth quarter of 2012, a 47% increase.
As of December 31, 2013, MicroStrategy had cash and cash equivalents and short-term investments, excluding those held-for-sale, of $357.4 million versus $223.1 million as of December 31, 2012, an increase of $134.3 million. As of December 31, 2013, MicroStrategy had 9.1 million shares of class A common stock and 2.2 million shares of class B common stock outstanding.
The table at the end of this press release includes a reconciliation of income from continuing operations to non-GAAP income from continuing operations for the three and twelve months ended December 31, 2013 and 2012. An explanation of this non-GAAP measure is also included under the heading "Non-GAAP Financial Measure" below.
BI Scorecard Places MicroStrategy as Top Vendor Across All 14 Product Capabilities for BI Platforms
In December 2013, the widely followed BI Scorecard rated MicroStrategy the top vendor across all 14 of the product capabilities identified for Business Intelligence (BI) Platforms. This is the third year in a row that MicroStrategy has topped the list of vendors in the BI Scorecard. Highlights from the study produced by independent analyst Cindi Howson include:
-- Only vendor to achieve "Excellent" or "Good" (green) ratings in all 14
functional areas.
-- Largest number of "Excellent" ratings of any vendor - in eight of
fourteen categories.
-- Only vendor to be rated "Excellent" in the "Mobile BI" category.
-- Highest rated among BI Platform vendors in the "Ease of Use" and "Visual
Discovery" categories.
-- Only vendor to be rated "Excellent" in both the "Administration" and
"Architecture" categories.
"The fact that MicroStrategy was the only vendor to achieve "Excellent" or "Good" ratings in all major 14 functional areas and had the largest number of "Excellent" ratings of any vendor - in eight of fourteen categories - is testament to their focus on innovation and BI Platform architecture," said Howson, founder of the BI Scorecard.
Forrester Research Cited MicroStrategy as a Leader in its Report Entitled "The Forrester Wave(TM): Enterprise Business Intelligence Platforms, Q4 2013"
In December 2013, Forrester Research, Inc. cited MicroStrategy as a leader in its report entitled "The Forrester Wave(TM): Enterprise Business Intelligence Platforms, Q4 2013." MicroStrategy received its top scores in Product direction, Global presence and install base, and Architecture.
According to the report, "MicroStrategy shines with seamless architecture and a top mobile BI platform. MicroStrategy has grown organically and architected its entire suite as a single platform. Forrester clients find that, after making the initial investment and effort in MicroStrategy, the reusability of all objects and the relational OLAP engine with drill-anywhere capability often result in longer lower-term total cost of ownership. We've also seen clients having the most success with enterprise-scalable mobile BI applications delivered on the MicroStrategy platform. Forrester found that MicroStrategy had excellent mobile information delivery, scalability, integrated metadata and reporting, and querying functionality."
According to the report, MicroStrategy customers praised our data access, information delivery, reporting and querying, operational capabilities, and corporate and product vision. The report found that MicroStrategy is differentiated by its completeness, comprehensiveness, and integration of its entire BI architectural stack.
Dresner Advisory Services Rated MicroStrategy the Number One Overall Offering out of 25 Vendors for Mobile Computing / Mobile Business Intelligence
In December 2013, Dresner Advisory Services rated MicroStrategy the number one overall offering out of 25 vendors for Mobile Computing / Mobile Business Intelligence. This is the third year in a row that MicroStrategy has topped the list of vendors included in Dresner's Wisdom of Crowds® Mobile Computing / Mobile BI Market Study.
Highlights from the study include:
-- Users in Sales & Marketing business functions have been among the
earliest adopters of Mobile BI.
-- Top perceived benefits include pervasive access to information, better
and faster decision-making, and better support for increasingly mobile
and customer-facing workforce.
-- As in 2011 and 2012, Apple's iOS devices remain the top priority in
terms of what devices organizations are using or plan to use, followed
by Android smartphones.
-- Also notable is the continued decline in the RIM Blackberry platform -
with more than 50% of respondents indicating "no interest."
-- From a vertical industry perspective, Retail & Wholesale assign Mobile
BI the highest importance and have been among the most ambitious in its
adoption - with many examples of excellent use cases related to store
and field management.
-- For the most popular mobile platforms (iOS, Android) users still have a
strong preference for native apps over web apps.
"Mobile Computing / Mobile BI is not only becoming more pervasive in and across organizations, it's becoming much more mature and advanced," said Howard Dresner, Founder and Chief Research Officer, Dresner Advisory Services, and author of the 2013 Wisdom of Crowds® Mobile Computing / Mobile BI Market Study. "Users' needs have shifted away from simple viewing of charts / reports and KPIs in favor of more sophisticated capabilities including data selection and filtering / drill-down navigation. For the third year in a row, the study rated MicroStrategy the top Mobile BI offering with the highest overall score for Mobile Computing / Mobile BI among all 25 vendors rated."
MicroStrategy Recognized as the #1 Retail Software Vendor in the 2013 Retail Information Systems News Software LeaderBoard
In December 2013, MicroStrategy was named the top retail software vendor in the 2013 Retail Information Systems (RIS) News Software LeaderBoard. This annual report highlights all of the major retail technology vendors in head-to-head comparisons largely based on retailer evaluations and serves as an objective guide to help retailers find the solutions and vendors they need. MicroStrategy finished in first place in the Top 20 Overall category among an international group of 87 leading retail software vendors. According to Joe Skorupa, Editor-in-Chief of RIS News, all vendors that appear on this master list are "truly retail technology's best of the best."
In addition to its number one rank in the Top 20 Overall, MicroStrategy also topped the following LeaderBoard charts:
-- Large Vendor Leaders
-- Broad Suite Vendor Leaders
-- Top Vendors for Tier One Retailers
Furthermore, MicroStrategy ranked in the top 10 in 11 other categories: Leaders in Apparel; Leaders in Specialty Retailing; Leaders in Retail Concentration; Large Vendor Customer Satisfaction; Leaders for Mid-Size Retailers; Leaders in Recommendation Status by Tier One Retailers; Leaders in Product Reliability by Tier One Retailers; Leaders by Apparel Retailers; Leaders in Overall Performance by Tier One Retailers; Leaders in Administration/Maintenance by Tier One Retailers; and Broad Suite Vendor Customer Satisfaction.
MicroStrategy CEO Addressed Technology-based Public Safety Solutions in the Post-9/11 World at POLITICO Panel on Emergency Preparedness
In November 2013, Chairman and CEO Michael Saylor participated on a POLITICO emergency-preparedness panel at the Newseum in Washington, D.C. Saylor discussed how mobile technology provides critical solutions for emergency and disaster response in the post-9/11 world. Among these solutions is MicroStrategy's Usher(TM) mobile identity management platform, which represents a transformational mobile app technology for public safety, at a time when the U.S. Department of Commerce is exploring a high-speed, nationwide network of secure communications for the country's First Responder Network Authority (FirstNet).
Examples of Customer Deals from Q4 2013:
-- Brussels Airport Company Brussels Airport is the airport to the capital
of Europe and is situated seven miles northeast of Brussels, Belgium.
It provides flight information and booking services, assistance
services, baggage and travel information, and a wide range of other
services to both passengers and business partners. Brussels Airport
selected MicroStrategy as its new enterprise analytics standard
replacing its previous BI solution. A new MicroStrategy customer,
Brussels Airport will use the MicroStrategy Analytics Platform(TM) to
analyze its business operations and improve insights into the airport's
operational performance and costs, and will provide executives and
managers with information dashboards that display volumes of data in a
highly visual and interactive manner. In choosing MicroStrategy,
Brussels Airport cited MicroStrategy's ease of use, interactivity,
performance, and scalability.
-- Einstein Noah Restaurant Group Inc. Einstein Noah Restaurant Group Inc.,
with headquarters in Lakewood, Colorado, is the nation's largest
operator of bagel bakeries and a leader in the quick casual segment of
the restaurant industry, owning retail brands Einstein Bros.® Bagels,
Noah's New York Bagels®, and Manhattan Bagel®. Einstein Noah
Restaurant Group said an expansion of MicroStrategy licenses will allow
it to rapidly deploy and extend its mobile application providing
store-level information to its management team. The focus will be on
migrating from traditional grid reports to delivering similar
information in a highly visual and interactive manner to generate rapid
insight into operational performance at the store, region, and brand
level. Additionally, Einstein Noah Restaurant Group is using
MicroStrategy Mobile(TM) to monitor restaurant evaluation information
from customer surveys providing feedback regarding customer
satisfaction. Tracking sales and cost information for each individual
store will be combined with customer service ratings, providing company
leadership a more detailed view of store and staff performance.
Einstein Noah Restaurant Group selected MicroStrategy for its platform's
ease of use, self-service analytics, scalability, and mobile leadership.
-- Elektroskandia Sverige ABElektroskandia Sverige AB, with headquarters in
Sollentuna, Sweden, is the market leading wholesaler of electronic
equipment in Sweden. Elektroskandia chose MicroStrategy to supply its
sales managers and field sales force with easy and accurate access to
KPIs via the web and mobile devices. Having a single reliable access
point to information will help Elektroskandia's senior leadership make
better decisions to increase productivity and overall revenue.
Elektroskandia chose MicroStrategy for its low total cost of ownership,
scalability, comprehensive analytics platform, and ease of use.
-- Hawaii Medical Service Association (HMSA) Hawaii Medical Service
Association (HMSA), headquartered in Oahu, is an independent licensee of
the Blue Cross and Blue Shield Association, as well as Hawaii's most
experienced health plan, insuring more than 50 percent of Hawaii's
population. A recent addition of MicroStrategy licenses will allow HMSA
to expand its presence in the community and focus its analytic efforts
on understanding consumers by measuring and predicting their behavior.
MicroStrategy was chosen for its platform's ease of use, self-service
analytics, and scalability.
-- Michelin Headquartered in Clermont-Ferrand, France, Michelin is a
leading global tire company dedicated to manufacturing and marketing
tires for every type of vehicle. Michelin is present in more than 170
countries, has 113,400 employees, and operates 69 production plants in
18 different countries. A MicroStrategy customer since 1998, Michelin
uses MicroStrategy for a broad range of analytics applications,
including finance, operations, sales and marketing and supply chain
analysis. Michelin recently chose to expand its usage of the
MicroStrategy Analytics Platform, making it its worldwide analytics
standard. MicroStrategy will help Michelin to better monitor the
performance of its worldwide manufacturing plants and improve business
decisions through visual and mobile analytics. MicroStrategy was
selected for its scalability, robustness, ease of use, and comprehensive
analytics and mobile architecture.
-- Nomura Research Institute, Ltd.With headquarters in Tokyo, Nomura
Research Institute (NRI) is Japan's largest consulting firm and has a
more than 30-year history of delivering IT services to the world's
largest convenience store chain, with more than 50,000 stores worldwide.
NRI selected MicroStrategy to better understand the performance of
product sales across 8,000 stores in the US, Canada and Mexico. With
MicroStrategy, all levels of managers, from store managers through
operations managers, to company executives will be able to track the
performance of critical KPIs, improve sales performance and labor
productivity, and lower perishable food costs. In selecting
MicroStrategy over other analytics products, NRI cited scalability,
robustness, ease of use, and MicroStrategy's leading comprehensive
analytics and mobile architecture platforms.
-- S-Group Headquartered in Helsinki, Finland, S-Group (SOK) is a retailing
cooperative organization consisting of 20 regional cooperatives
operating across Finland in the markets for groceries, consumer
durables, service stations, hotel and restaurant services, agricultural
supplies, and car sales. A MicroStrategy customer since 1999, SOK uses
MicroStrategy for a broad range of analytics applications, including
sales, operations and merchandising. A recent investment in
MicroStrategy Mobile licenses will allow SOK executives and management
to consume business- critical data on their mobile devices, and react to
trends and anomalies quickly. SOK selected MicroStrategy for its
strategic focus and leadership in mobility, ease of use, scalability,
and device-independent enterprise platform.
-- The Weather Channel The Weather Channel, with headquarters in Atlanta,
Georgia, provides millions of people every day with the world's best
weather forecasts, content, and data, connecting with them through
television, online, mobile, and tablet screens. A new MicroStrategy
customer, The Weather Channel selected the MicroStrategy Analytics
Platform to help them better analyze performance and trends around
products, audience, pricing, and revenue. The Weather Channel chose
MicroStrategy for its platform's ease of use, self-service analytics,
scalability, and mobile capabilities.
-- Virginia Tech Virginia Tech is a public land-grant, space-grant, and
sea-grant university with its main campus in Blacksburg, Virginia, with
other research and educational centers throughout the Commonwealth of
Virginia, the National Capital Region, and international locations in
Switzerland, India, and the Dominican Republic. Virginia Tech selected
MicroStrategy as its enterprise BI software solution. By standardizing
its reports and dashboards on MicroStrategy, Virginia Tech will give its
end users highly interactive views of university data for admissions and
enrollment information, as well as financial and HR data. Virginia Tech
selected MicroStrategy for its organically-grown architecture platform,
ease of use, superior customer references in the higher education space,
as well as for its visualization and reporting capabilities.
Non-GAAP Financial Measure
MicroStrategy is providing a supplemental financial measure for income from continuing operations that excludes the impact of share-based compensation arrangements. This financial measure is not a measurement of financial performance under generally accepted accounting principles in the United States ("GAAP") and, as a result, this financial measure may not be comparable to similarly titled measures of other companies. Management uses this non-GAAP financial measure internally to help understand, manage, and evaluate business performance and to help make operating decisions. MicroStrategy believes that this non-GAAP financial measure is also useful to investors and analysts in comparing its performance across reporting periods on a consistent basis because it excludes a significant non-cash expense that the Company believes is not reflective of its general business performance. In addition, accounting for share-based compensation arrangements requires significant management judgment and the resulting expense could vary significantly in comparison to other companies. Therefore, MicroStrategy believes the use of this non-GAAP financial measure can also facilitate comparison of the Company's operating results to those of its competitors.
About MicroStrategy Incorporated
Founded in 1989, MicroStrategy (Nasdaq: MSTR) is a leading worldwide provider of enterprise software platforms. The Company's mission is to provide the most flexible, powerful, scalable and user-friendly platforms for analytics, mobile, identity and loyalty, offered either on premises or in the cloud.
The MicroStrategy Analytics Platform(TM) enables leading organizations to analyze vast amounts of data and distribute actionable business insight throughout the enterprise. Our analytics platform delivers reports and dashboards, and enables users to conduct ad hoc analysis and share their insights anywhere, anytime. MicroStrategy Mobile(TM) lets organizations rapidly build information-rich applications that combine multimedia, transactions, analytics, and custom workflows. The MicroStrategy Identity Platform(TM) (branded as MicroStrategy Usher(TM)) provides organizations the ability to develop a secure mobile app for identity and credentials. The MicroStrategy Loyalty Platform(TM) (branded as MicroStrategy Alert) is a next-generation, mobile customer loyalty and engagement solution. To learn more about MicroStrategy, visit www.microstrategy.com and follow us on Facebook (http://www.facebook.com/microstrategy) and Twitter (http://www.twitter.com/microstrategy).
MicroStrategy, MicroStrategy Analytics Platform, MicroStrategy Mobile, MicroStrategy Identity Platform, MicroStrategy Loyalty Platform, and MicroStrategy 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; 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; fluctuations in tax benefits or provisions; 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.
MSTR-F
Contact:
MicroStrategy Incorporated
Investor Relations
ir@microstrategy.com
(703) 848-8600
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Twelve months Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues
Product licenses and
subscription services $58,809 $48,095 $160,125 $150,462
Product support 72,504 68,819 277,509 262,048
Other services 34,568 39,072 138,254 153,214
Total revenues 165,881 155,986 575,888 565,724
------- ------- ------- -------
Cost of revenues
Product licenses and
subscription services 5,900 3,801 22,242 12,440
Product support 4,057 4,340 16,617 15,532
Other services 23,012 28,298 99,710 113,104
Total cost of revenues 32,969 36,439 138,569 141,076
------ ------ ------- -------
Gross profit 132,912 119,547 437,319 424,648
------- ------- ------- -------
Operating expenses
Sales and marketing 60,891 56,590 215,089 209,975
Research and development 26,035 25,079 98,056 88,190
General and administrative 27,463 24,192 104,734 93,384
Total operating expenses 114,389 105,861 417,879 391,549
------- ------- ------- -------
Income from continuing
operations 18,523 13,686 19,440 33,099
Interest income, net 34 50 497 143
Other expense, net (1,262) (1,799) (3,186) (1,035)
------ ------ ------ ------
Income from continuing
operations before income
taxes 17,295 11,937 16,751 32,207
Provision for (benefit from)
income taxes 1,147 3,587 (9,799) 9,734
----- ----- ------ -----
Income from continuing
operations, net of tax 16,148 8,350 26,550 22,473
Discontinued operations
Gain from sale of discontinued operations, net of tax
provision ($0 and $0 and $37,548 and $0, respectively)
- - 57,377 -
Loss from discontinued operations, net of tax benefit ($0
and $85 and $391 and $1,049, respectively)
- (110) (595) (1,927)
Discontinued operations, net
of tax - (110) 56,782 (1,927)
Net income $16,148 $8,240 $83,332 $20,546
======= ====== ======= =======
Basic earnings (loss) per share (1):
From continuing operations $1.43 $0.74 $2.35 $2.05
From discontinued operations - (0.01) 5.02 (0.18)
--- ----- ---- -----
Basic earnings per share $1.43 $0.73 $7.37 $1.87
===== ===== ===== =====
Weighted average shares
outstanding used in computing
basic earnings (loss) per
share 11,301 11,245 11,300 10,995
====== ====== ====== ======
Diluted earnings (loss) per share (1):
From continuing operations $1.43 $0.74 $2.35 $2.01
From discontinued operations - (0.01) 5.02 (0.17)
--- ----- ---- -----
Diluted earnings per share $1.43 $0.73 $7.37 $1.84
===== ===== ===== =====
Weighted average shares
outstanding used in computing
diluted earnings (loss) per
share 11,301 11,281 11,301 11,174
====== ====== ====== ======
(1) Basic and fully diluted earnings (loss) per share for class A and class B common stock are the same.
MICROSTRATEGY INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
December 31, December 31,
2013 2012*
---- ----
Assets (unaudited)
Current assets
Cash
and
cash
equivalents $220,171 $223,043
Restricted
cash 583 50
Short-
term
investments 137,198 36
Accounts
receivable,
net 86,181 89,038
Prepaid
expenses
and
other
current
assets 14,260 12,689
Deferred
tax
assets,
net 21,555 26,616
Assets
held-
for-
sale - 10,571
--- ------
Total
current
assets 479,948 362,043
Property
and
equipment,
net 85,445 96,751
Capitalized
software
development
costs,
net 10,295 10,360
Deposits
and
other
assets 6,622 5,120
Deferred
tax
assets,
net 3,204 3,664
----- -----
Total
Assets $585,514 $477,938
======== ========
Liabilities and Stockholders' Equity
Current liabilities
Accounts
payable
and
accrued
expenses $39,946 $40,905
Accrued
compensation
and
employee
benefits 79,495 71,789
Deferred
revenue
and
advance
payments 113,656 101,249
Deferred
tax
liabilities 422 523
Liabilities
held-
for-
sale - 4,689
--- -----
Total
current
liabilities 233,519 219,155
Deferred
revenue
and
advance
payments 8,970 8,823
Other
long-
term
liabilities 25,511 43,418
Deferred
tax
liabilities 7,188 6,231
----- -----
Total
Liabilities 275,188 277,627
------- -------
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;
15,478 shares issued and 9,073 shares
outstanding, and 15,462 shares
issued
and
9,057
shares
outstanding,
respectively 15 15
Class B common stock, $0.001 par
value; 165,000 shares authorized;
2,227
shares respectively
issued
and
outstanding,
and
2,227
shares
issued
and
outstanding, 2 2
Additional
paid-
in
capital 494,086 468,087
Treasury
stock,
at
cost;
6,405
shares (475,184) (475,184)
Accumulated
other
comprehensive
loss (831) (1,515)
Retained
earnings 292,238 208,906
Total
Stockholders'
Equity 310,326 200,311
------- -------
Total
Liabilities
and
Stockholders'
Equity $585,514 $477,938
======== ========
*Derived from audited financial
statements.
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 31,
------------
2013 2012
---- ----
(unaudited) (unaudited)
Operating activities:
Net income $83,332 $20,546
Plus:
(Income)
loss from
discontinued
operations,
net of tax (56,782) 1,927
------- -----
Income from continuing
operations, net of tax 26,550 22,473
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation
and
amortization 26,399 22,454
Bad debt
expense 2,281 2,361
Deferred
taxes (3,319) 1,967
Release of
liabilities
for
unrecognized
tax benefits (14,643) (472)
Share-based
compensation
expense 2,078 -
Excess tax
benefits
from share-
based
compensation
arrangements (23,580) -
Changes in operating assets and
liabilities:
Accounts
receivable 676 526
Prepaid
expenses and
other
current
assets (565) 305
Deposits and
other assets 794 175
Accounts
payable and
accrued
expenses (4,786) 3,763
Accrued
compensation
and employee
benefits 8,176 4,578
Deferred
revenue and
advance
payments 13,465 (3,967)
Other long-
term
liabilities (2,928) (2,000)
------ ------
Net cash provided by operating
activities from continuing
operations 30,598 52,163
Net cash used in operating
activities from discontinued
operations (664) (2,279)
Net cash provided by operating
activities 29,934 49,884
------ ------
Investing activities:
Proceeds from
redemption
of short-
term
investments 87,000 -
Purchases of
property and
equipment (11,043) (29,621)
Purchases of
short-term
investments (224,103) -
Capitalized
software
development
costs (5,437) (8,148)
Insurance
proceeds - 3,206
(Increase)
decrease in
restricted
cash and
investments (483) 225
---- ---
Net cash used in investing
activities from continuing
operations (154,066) (34,338)
Net cash provided by (used in)
investing activities from
discontinued operations 99,136 (1,495)
Net cash used in investing
activities (54,930) (35,833)
------- -------
Financing activities:
Proceeds from
sale of
class A
common stock
under
exercise of
employee
stock
options 341 10,250
Excess tax
benefits
from share-
based
compensation
arrangements 23,580 -
Payments on
capital
lease
obligations
and other
financing
arrangements (2,284) (491)
Net cash provided by financing
activities from continuing
operations 21,637 9,759
Net cash provided by financing
activities from discontinued
operations - -
Net cash provided by financing
activities 21,637 9,759
------ -----
Effect of foreign exchange rate
changes on cash and cash
equivalents (863) 949
---- ---
Net (decrease) increase in cash
and cash equivalents (4,222) 24,759
Cash and cash equivalents
(including held-for-sale of
$1,350 and $5,300,
respectively), beginning of
period 224,393 199,634
------- -------
Cash and cash equivalents
(including held-for-sale of
$0 and $1,350, respectively),
end of period $220,171 $224,393
======== ========
MICROSTRATEGY INCORPORATED
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in thousands)
Three Months Ended Twelve months Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
(unaudited) (unaudited) (unaudited) (unaudited)
Reconciliation of
non-GAAP income
from continuing
operations:
Income from
continuing
operations $18,523 $13,686 $19,440 $33,099
Share-based
compensation
expense 1,634 - 2,078 -
Non-GAAP income
from continuing
operations $20,157 $13,686 $21,518 $33,099
======= ======= ======= =======
MICROSTRATEGY INCORPORATED
REVENUE AND COST OF REVENUE DETAIL
(in thousands)
Three Months Ended Twelve months Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues
Product
licenses
and
subscription
services:
Product
licenses $55,153 $46,265 $147,879 $147,344
Subscription
services 3,656 1,830 12,246 3,118
Total
product
licenses
and
subscription
services 58,809 48,095 160,125 150,462
------ ------ ------- -------
Product
support 72,504 68,819 277,509 262,048
Other
services:
Consulting 30,433 33,971 122,230 134,382
Education 4,135 5,101 16,024 18,832
Total
other
services 34,568 39,072 138,254 153,214
------ ------ ------- -------
Total
revenues 165,881 155,986 575,888 565,724
------- ------- ------- -------
Cost of
revenues
Product
licenses
and
subscription
services:
Product
licenses 2,056 1,632 6,606 5,819
Subscription
services 3,844 2,169 15,636 6,621
Total
product
licenses
and
subscription
services 5,900 3,801 22,242 12,440
----- ----- ------ ------
Product
support 4,057 4,340 16,617 15,532
Other
services:
Consulting 21,659 26,411 93,661 105,720
Education 1,353 1,887 6,049 7,384
Total
other
services 23,012 28,298 99,710 113,104
------ ------ ------ -------
Total
cost of
revenues 32,969 36,439 138,569 141,076
------ ------ ------- -------
Gross
profit $132,912 $119,547 $437,319 $424,648
======== ======== ======== ========
SOURCE MicroStrategy Incorporated
