Latest Business Intelligence News
Leading Korean Retailer Lotte Mart Successfully Deploys MicroStrategy Technology Enterprise-Wide
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that Lotte Mart, a leading Korean retailer, has successfully deployed the MicroStrategy Business Intelligence Platform� across the organization. Lotte Mart, with 2.1 trillio
McLean, Va., (June 19, 2003) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that Lotte Mart, a leading Korean retailer, has successfully deployed the MicroStrategy Business Intelligence Platform(TM) across the organization. Lotte Mart, with 2.1 trillion won in revenues in 2002, reaches an estimated 200,000 customers daily through its 31 store locations across Korea.
“With MicroStrategy’s technology, our employees are able to more effectively track sales trends at any given store location and react quickly to customer preferences,” said Mr. Sang-Jin Lee, CRM manager of Customer Service at Lotte Mart. “We are definitely impressed with the platform’s superior capabilities, ease-of-use and scalability, and look forward to deploying additional MicroStrategy-based applications in the future,” added Tae Hwan Lee, with Lotte Mart’s Information Strategy Team.
Approximately 500 Lotte Mart employees in marketing, planning, sales strategy and purchasing use MicroStrategy to perform ad hoc queries and run reports against a 3.6-terabyte Teradata® data warehouse. Instead of tapping the IT department to create reports, employees today are able to run reports with ease and make decisions that improve sales and eliminate inventory inefficiencies.
About Lotte Mart
Lotte Mart reaches an estimated 200,000 customers each day through its 31 retail locations across Korea. It recorded 2.1 trillion won in revenue in 2002. The Korean Customer Satisfaction Index ranked Lotte Mart as first, and the company also earned many prestigious awards such as “customer recommended” and “price innovator” in the discount retail category. For more information, please visit www.lotteshopping.com.
About MicroStrategy Incorporated
Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Leading Fortune 2000 companies are integrating MicroStrategy’s industrial-strength software into virtually all facets of their businesses. The MicroStrategy Business Intelligence Platform(TM) distills vast amounts of data into vital, probing insight to help drive cost-efficiency, productivity, customer relations and revenue-generation. MicroStrategy offers exceptional capabilities — excellent scalability, powerful analytics, user-friendly query and reporting features and an outstanding, easy-to-use Web interface. Top companies are using MicroStrategy to cost-effectively harness large, multi-terabyte databases; empower thousands of employees at all operational levels; and extend the benefits of business intelligence enterprise-wide and beyond to customers, partners and suppliers.
MicroStrategy has over 2,000 enterprise-class customers, including General Motors, Best Buy, Lowe’s Home Improvement Warehouse, Yahoo!, Visa International, Wells Fargo, Telecom Italia, AT&T Wireless Group and Aventis. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Sun, and JD Edwards. MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information or to purchase or demo MicroStrategy’s software, visit MicroStrategy’s Web site at www.microstrategy.com.
This press release may include statements that may constitute “forward-looking statements,” including its 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; 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 is a registered trademark 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.
Marc Brailov
MicroStrategy Incorporated
(703) 770-1670
mbrailov@microstrategy.com
Source: MicroStrategy
Chela Financial Enhances Education Finance Offerings With MicroStrategy Technology
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that Chela Financial has successfully deployed the MicroStrategy Business Intelligence Platform� to improve its educational financing offerings by more effectively tracking
McLean, Va., (June 12, 2003) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that Chela Financial has successfully deployed the MicroStrategy Business Intelligence Platform(TM) to improve its educational financing offerings by more effectively tracking its loan origination and acquisition volume. Chela Financial, with headquarters in San Francisco, CA, is a leading not-for-profit education financing company.
Chela Financial’s analysts and senior management use MicroStrategy software to monitor its $2.4 billion student loan portfolio. End users are able to evaluate the performance of these loans, monitor past acquisitions and originations, and provide analysis that improves the modeling of future loan acquisitions and originations.
“MicroStrategy supports our business intelligence needs, enabling us to effectively analyze financial information through a secure environment,” said Douglas Dolton, chief operating officer at Chela Financial. “Our MicroStrategy-based system is an outgrowth of our focus on superior customer service. Using MicroStrategy, we’ve been able to improve our educational financing offerings, underscoring our commitment to providing students with the best products and services.”
Chela Financial also uses MicroStrategy technology to report on the origination composition of its loans. End users, for instance, can track application volume, identify the options applicants choose at the time of loan origination, and ensure that Chela Financial is approving loans to meet underwriting criteria. End users are also able to track application volume by channel performance –determining the success rate of Web-based applications versus telephone-based applications.
Of the MicroStrategy reports fulfilled per month, 30 percent are ad hoc queries that are run against an Oracle® loan origination data warehouse and a SQL Server® servicing data warehouse.
About Chela Financial
Since 1979, Chela Financial has been committed to helping students and their families find the financial resources to unleash their potential with loans, scholarships, and information. As a leading not-for-profit education finance company, Chela Financial has helped students achieve their educational goals by financing approximately $4 billion of loans. The company is actively involved in community-based programs and has dedicated more than $2 million to scholarship and outreach programs. In addition to providing student loan secondary market services, Chela Financial originates private education loans, the AcademicEdge® Loan and the CalEdge Loan, as well as the Federal Stafford Loan, the Federal PLUS Loan, and the OnePay Consolidation Loan. For more information, please visit www.loans4students.org.
About MicroStrategy Incorporated
Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Leading Fortune 2000 companies are integrating MicroStrategy’s industrial-strength software into virtually all facets of their businesses. The MicroStrategy Business Intelligence Platform(TM) distills vast amounts of data into vital, probing insight to help drive cost-efficiency, productivity, customer relations and revenue-generation. MicroStrategy offers exceptional capabilities — excellent scalability, powerful analytics, user-friendly query and reporting features and an outstanding, easy-to-use Web interface. Top companies are using MicroStrategy to cost-effectively harness large, multi-terabyte databases; empower thousands of employees at all operational levels; and extend the benefits of business intelligence enterprise-wide and beyond to customers, partners and suppliers.
MicroStrategy has over 2,000 enterprise-class customers, including General Motors, Best Buy, Lowe’s Home Improvement Warehouse, Yahoo!, Visa International, Wells Fargo, Telecom Italia, AT&T Wireless Group and Aventis. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Sun, and JD Edwards. MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information or to purchase or demo MicroStrategy’s software, visit MicroStrategy’s Web site at www.microstrategy.com.
This press release may include statements that may constitute “forward-looking statements,” including its 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; 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 is a registered trademark 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.
Marc Brailov
MicroStrategy Incorporated
(703) 770-1670
mbrailov@microstrategy.com
Source: MicroStrategy
MicroStrategy and SYSTIME Form Strategic Alliance
MicroStrategyâ??s Business Intelligence Platformâ?¢ Integrated with SYSTIMEâ??s Data Warehouse Solution
McLean, Va., (June 10, 2003) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced a strategic alliance with SYSTIME Computer Corporation. SYSTIME is the leading global provider of IT services for collaborative commerce solutions including ERP, SCM, CRM, BI, Integration, supply-side B-2-B solutions, HR, and Outsourcing services.
The alliance combines SYSTIME’s technology expertise and business knowledge with MicroStrategy’s leading Business Intelligence Platform. Under the terms of the agreement, SYSTIME will integrate MicroStrategy’s Business Intelligence offerings with its data warehouse solution, while continuing to provide strategic consulting to its growing client base. SYSTIME delivers a complete range of services from consulting to platform implementation.
“SYSTIME is pleased to enter into a global alliance with MicroStrategy. As J.D. Edwards’ preferred business intelligence solution, MicroStrategy will be a key partner in our growing business intelligence practice. As the demand for business intelligence solutions grows, SYSTIME and MicroStrategy are poised to build referencable clients across key industries and geographies,” said Vishal Grover, executive vice president, SYSTIME.
“By partnering with SYSTIME, we are able to leverage their global presence and over 26 years of experience in IT, to help MicroStrategy increase its customer reach, both domestically and internationally, while building our Alliance Program with world-class integrators,” said MicroStrategy’s vice president of Global Alliances & Business Development, Tom Villani. “This alliance provides global clients that operate in a myriad of industries with data analysis capabilities that enhance SYSTIME’s data warehouse solutions. These customers will benefit from optimized business operations, enhanced efficiency and improved customer relations.”
About SYSTIME
SYSTIME is the leading global provider of IT services for collaborative commerce solutions ranging from ERP, CRM, SCM, BI, Supply-side B-2-B solutions, HR and outsourcing services. Our alliances with numerous e-collaboration partners (JD Edwards, Ariba, BEA, webMethods, etc.) enable us to deliver solutions that span technologies, platforms and business processes. Our global presence, with offices in all major continents, and over 26 years’ proven track record in IT, enable us to leverage our technology skills worldwide to help our clients that operate in a myriad of industries. A unique offering is our Global Delivery model where we are able to reduce project costs and expedite delivery times. At SYSTIME, we believe our value is in our people who consistently bring bold strategies, innovative thinking, pioneering leadership and best of all cutting-edge solutions that will catapult your company into the new economy. Through our innovative project delivery vehicles, SYSTIME leads the way in “Redefining the Business Paradigm…”
SYSTIME employs over 4000 employees in 30 offices worldwide. For more information on SYSTIME, visit us at www.systime.net
About MicroStrategy Incorporated
Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Leading Fortune 2000 companies are integrating MicroStrategy’s industrial-strength software into virtually all facets of their businesses. The MicroStrategy Business Intelligence Platform(TM) distills vast amounts of data into vital, probing insight to help drive cost-efficiency, productivity, customer relations and revenue-generation. MicroStrategy offers exceptional capabilities — excellent scalability, powerful analytics, user-friendly query and reporting features and an outstanding, easy-to-use Web interface. Top companies are using MicroStrategy to cost-effectively harness large, multi-terabyte databases; empower thousands of employees at all operational levels; and extend the benefits of business intelligence enterprise-wide and beyond to customers, partners and suppliers.
MicroStrategy has over 2,000 enterprise-class customers, including General Motors, Best Buy, Lowe’s Home Improvement Warehouse, Yahoo!, Visa International, Wells Fargo, Telecom Italia, AT&T Wireless Group and Aventis. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Sun, and JD Edwards. MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information or to purchase or demo MicroStrategy’s software, visit MicroStrategy’s Web site at Click Here.
This press release may include statements that may constitute “forward-looking statements,” including its 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; 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 Business Intelligence Platform 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.
Liz Kelley Smeds
MicroStrategy
703-714-1066
lsmeds@microstrategy.com
Source: MicroStrategy
State of Tennessee’s MicroStrategy Application Wins DM Review’s World Class Solution Award
Tennessee Using MicroStrategy to Analyze Millions of Financial Records
McLean, Va., (June 03, 2003) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that the State of Tennessee’s Department of Finance and Administration has won a DM Review World Class Solution Award for its MicroStrategy business intelligence application (Click Here). Tennessee’s Department of Finance and Administration has successfully deployed the MicroStrategy system for processing and analyzing millions of financial records in an efficient manner.
The Department selected the MicroStrategy Business Intelligence Platform(TM) to serve as the analytical tool for its financial data warehouse application — now called the Financial Data Access System (FDAS) and housed in a mainframe DB2 database. The solution has provided the Department with the ability to conduct financial analysis across multiple dimensions with an easy-to-use Web-based interface for State decision-makers to build new reports, execute queries and schedule reports.
This MicroStrategy application has reduced costs and significantly improved the quality of financial information for decision-making. State decision-makers now get financial updates daily instead of monthly. Centralized quality control has helped to ensure that financial calculation formulas are accurate and logical. With access to more timely financial data, State decision-makers can make more informed assessments on how best to spend and manage Tennessee’s financial resources.
“MicroStrategy is extremely proud to win this prestigious award with the State of Tennessee’s Department of Finance and Administration,” said MicroStrategy’s COO Sanju Bansal. “This application demonstrates the exceptional scalability of MicroStrategy’s software for highly critical, far-reaching implementations – which in this case benefits an entire state.”
DM Review is one of the industry’s most respected trade publications. The DM Review World Class Solutions Award, a symbol of excellence within the business intelligence and data warehousing industry, originated in 1996.
About MicroStrategy Incorporated
Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Leading Fortune 2000 companies are integrating MicroStrategy’s industrial-strength software into virtually all facets of their businesses. The MicroStrategy Business Intelligence Platform(TM) distills vast amounts of data into vital, probing insight to help drive cost-efficiency, productivity, customer relations and revenue-generation. MicroStrategy offers exceptional capabilities – excellent scalability, powerful analytics, user-friendly query and reporting features and an outstanding, easy-to-use Web interface. Top companies are using MicroStrategy to cost-effectively harness large, multi-terabyte databases; empower thousands of employees at all operational levels; and extend the benefits of business intelligence enterprise-wide and beyond to customers, partners and suppliers.
MicroStrategy has over 2,000 enterprise-class customers, including General Motors, Best Buy, Lowe’s Home Improvement Warehouse, Yahoo!, Visa International, Wells Fargo, Telecom Italia, AT&T Wireless Group and Aventis. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Sun, and JD Edwards. MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information or to purchase or demo MicroStrategy’s software, visit MicroStrategy’s Web site at Click Here.
MicroStrategy, MicroStrategy 7, MicroStrategy Business Intelligence Platform, and MicroStrategy 7i 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 its 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; 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, MicroStrategy Business Intelligence Platform 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.
Marc Brailov
MicroStrategy Incorporated
(703) 770-1670
mbrailov@microstrategy.com
Source: MicroStrategy
MicroStrategy Incorporated to Present at Friedman, Billings, Ramsey Seventh Annual Technology & Growth Investor Conference
MicroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, today announced that Eric Brown, President and Chief Financial Officer, will present at the Friedman, Billings, Ramsey Seventh Annual Technology and Growth Investor Conference at 4:50 p.m. ED
MCLEAN, Va., (May 23, 2003) –
icroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, today announced that Eric Brown, President and Chief Financial Officer, will present at the Friedman, Billings, Ramsey Seventh Annual Technology and Growth Investor Conference at 4:50 p.m. EDT on May 28, 2003, in New York City.
The presentation will be followed by a question and answer session.
A live and archived Webcast of the presentation and Q&A will be available at Click Here or Click Here.
About MicroStrategy
Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Leading Fortune 2000 companies are integrating MicroStrategy’s industrial-strength software into virtually all facets of their businesses. The MicroStrategy Business Intelligence Platform(TM) distills vast amounts of data into vital, probing insight to help drive cost-efficiency, productivity, customer relations and revenue-generation. MicroStrategy offers exceptional capabilities — unrivaled scalability, powerful analytics, user-friendly query and reporting features and an outstanding, easy-to-use Web interface. Top companies are using MicroStrategy to cost-effectively harness the world’s largest, multi- terabyte databases; empower thousands of employees at all operational levels; and extend the benefits of business intelligence enterprise-wide and beyond to customers, partners and suppliers.
MicroStrategy has over 2,000 enterprise-class customers, including General Motors, Best Buy, Lowe’s Home Improvement Warehouse, Yahoo!, Visa International, Wells Fargo, Telecom Italia, AT&T Wireless Group and Aventis. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Sun, and JD Edwards. MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information or to purchase or demo MicroStrategy’s software, visit MicroStrategy’s Web site at Click Here.
MicroStrategy, MicroStrategy 7, MicroStrategy Business Intelligence Platform, and MicroStrategy 7i 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 its 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; 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 is a registered trademark 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.
Marc Brailov
MicroStrategy Incorporated
(703) 770-1670
mbrailov@microstrategy.com
Source: MicroStrategy
eBay Selects MicroStrategy Platform for Enterprise Business Intelligence
Plans to deploy to Thousands of Knowledge Workers; Praises MicroStrategy’s “Exceptional Scalability”
McLean, Va., (May 21, 2003) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that eBay has selected the MicroStrategy Business Intelligence Platform(TM) to analyze the ongoing performance of the many different categories of products and services for sale on its Web sites. On any given day, there are more than 16 million items listed on eBay across 27,000 categories. In 2002, eBay users transacted $14.87 billion in gross merchandise sales.
“eBay selected MicroStrategy because of its exceptional user scalability and its ability to support advanced reporting and analysis,” said eBay CIO Brad Peterson. “MicroStrategy also provides excellent query performance with our rapidly growing multi-terabyte data warehouse.”
“One of eBay’s greatest assets is their data. By enhancing their understanding of this data, they can continue to improve their offerings to the eBay community,” said MicroStrategy’s COO Sanju Bansal. “We’re known as the scalability leader in business intelligence, and we’re proud to work with eBay, an innovative, rapidly growing company with an outstanding reputation.”
About MicroStrategy Incorporated
Leadership in a Critical Market: Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Large and small companies alike are harnessing MicroStrategy’s business intelligence software to gain vital insights from their data to help them proactively enhance cost-efficiency, productivity and customer relations and optimize revenue-generating strategies. MicroStrategy’s business intelligence platform offers exceptional capabilities that provide organizations — in virtually all facets of their operations — with user- friendly solutions to their data query, reporting, and advanced analytical needs, and distributes valuable insight on this data to users via Web, wireless, and voice. PC Magazine selected MicroStrategy 7(TM) as the 2001 “Editors’ Choice” for business intelligence software.
Enterprise-Class Business Intelligence: MicroStrategy 7i(TM) is a truly integrated, enterprise-class, Web-based business intelligence platform. With MicroStrategy 7i, enterprises can now standardize on one business intelligence platform and deploy high-value business intelligence enterprise-wide. MicroStrategy 7i’s configurable query, reporting, and OLAP Web interface is designed to support all users, from casual report viewers to power analysts.
Diverse Customer Base: MicroStrategy’s customer base cuts across industry and sector lines, with over 1,900 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Hewlett-Packard, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information on the company, or to purchase or demo MicroStrategy’s software, please visit MicroStrategy’s Web site at http://www.microstrategy.com.
This press release may include statements that may constitute “forward- looking statements,” including its 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; 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, MicroStrategy Business Intelligence Platform, MicroStrategy 7i 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.
Source: MicroStrategy
Entertainment UK Successfully Deploys MicroStrategy Technology to Optimize its Supply Chain
Entertainment UK Successfully Deploys MicroStrategy Technology to Optimize its Supply Chain
McLean, Va., (May 06, 2003) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that Entertainment UK (EUK), one of the largest wholesalers and distributors of music, video, CDs and DVDs in the UK, has successfully deployed the MicroStrategy Business Intelligence Platform(TM) to improve customer relationships and supply chain operations.
After using MicroStrategy technology for several years, EUK knew that further use of its business intelligence platform would not only provide its customer with the information they needed to take advantage of the shifting demographics and social trends, but could also benefit its suppliers. In 2002, EUK decided to leverage its MicroStrategy infrastructure and open up its supply chain downstream to the supermarket chain and upstream to its suppliers.
“Deploying the MicroStrategy platform has resulted in some very significant benefits,” said Richard Driver, EUK’s Business Information Manager. “Our suppliers can see what is happening in the real world. With the technology, we’re able to optimize our entertainment offerings and track product sales by location. This enables us to improve our sales strategies, thereby strengthening customer relationships.”
The technology is helping approximately 200 supplier end users more effectively manage their production and manufacturing processes, resulting in improved terms for Entertainment UK on its purchases. In addition, EUK’s internal users are leveraging the value of the MicroStrategy platform to generate a wide range of reports and investigate data patterns using the full range of ad hoc query, reporting, statistical and data mining analyses.
“The MicroStrategy platform is flexible and can scale to a large and diverse user population, and that is one of the reasons we chose it. The technology has certainly been a differentiator for us and we plan to expand its usage by bringing in more customers when they are ready,” added Driver. “The MicroStrategy platform is the most complete product compared to what else is available. Management of the platform is also very straightforward. It’s easy to set up, it’s easy to keep going and we haven’t looked back.”
About Entertainment UK
Entertainment UK is Europe’s largest wholesale distributor of home entertainment products, supplying many of Britain’s best-known retailers with music, video and games products. Entertainment UK is part of the Woolworths Group and its customers include Comet, MVC, Safeway, Tesco, Woolworths and Waitrose. For further information on Entertainment UK, please visit http://www.entuk.co.uk.
About MicroStrategy Incorporated
Leadership in a Critical Market: Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Large and small companies alike are harnessing MicroStrategy’s business intelligence software to gain vital insights from their data to help them proactively enhance cost-efficiency, productivity and customer relations and optimize revenue-generating strategies. MicroStrategy’s business intelligence platform offers exceptional capabilities that provide organizations — in virtually all facets of their operations — with user- friendly solutions to their data query, reporting, and advanced analytical needs, and distributes valuable insight on this data to users via Web, wireless, and voice. PC Magazine selected MicroStrategy 7(TM) as the 2001 “Editors’ Choice” for business intelligence software.
Enterprise-Class Business Intelligence: MicroStrategy 7i(TM) is a truly integrated, enterprise-class, Web-based business intelligence platform. With MicroStrategy 7i, enterprises can now standardize on one business intelligence platform and deploy high-value business intelligence enterprise-wide. MicroStrategy 7i’s configurable query, reporting, and OLAP Web interface is designed to support all users, from casual report viewers to power analysts.
Diverse Customer Base: MicroStrategy’s customer base cuts across industry and sector lines, with over 1,900 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Hewlett-Packard, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information on the company, or to purchase or demo MicroStrategy’s software, please visit MicroStrategy’s Web site at http://www.microstrategy.com.
This press release may include statements that may constitute “forward- looking statements,” including its 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; 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, MicroStrategy Business Intelligence Platform, MicroStrategy 7i 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.
Marc Brailov
MicroStrategy Incorporated
(703) 770-1670
mbrailov@microstrategy.com
Source: MicroStrategy
MicroStrategy Achieves Fifth Consecutive Quarter of Profitability in Q1 2003
License Revenues Increase by 14 Percent versus Q1 2002
MCLEAN, Va., (April 29, 2003) –
MicroStrategy(R) Incorporated (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, today announced its financial results for the three- month period ended March 31, 2003 (the first quarter of its 2003 fiscal year), reporting its fifth consecutive quarter of GAAP profitability and earnings of $0.05 per share on a diluted basis. License revenue rose approximately 14 percent from the first quarter of the 2002 fiscal year.
First quarter 2003 revenues were $37.4 million versus $42.0 million in the fourth quarter of 2002 and $35.7 million in the first quarter of 2002. First quarter 2003 license revenues were $16.5 million versus $20.5 million in the fourth quarter of 2002 and $14.5 million in the first quarter of 2002. Net income attributable to common stockholders for the first quarter of 2003, determined in accordance with Generally Accepted Accounting Principles (GAAP), was $0.7 million, or $0.05 per share on a diluted basis. This result included non-cash charges for amortization of intangible assets of $0.1 million, a non- cash charge for discount amortization expense on notes payable of $1.0 million, and a non-cash gain on the partial extinguishment of notes payable of $0.02 million. Excluding these non-cash items, adjusted net earnings for the first quarter of 2003 was $1.8 million, or $0.12 per share on a diluted basis. “Our team has delivered five consecutive profitable quarters as well as two consecutive quarters of year over year license revenue growth,” said MicroStrategy President and CFO Eric F. Brown. “This license revenue growth is encouraging and demonstrates our ongoing success at winning major deals with new and existing Fortune 1000 customers.”
“We continue to benefit from our strategic focus on delivering the world’s finest BI platform,” said MicroStrategy Chairman and CEO Michael J. Saylor. “Our customers are building and deploying valuable enterprise BI applications which we believe will generate recurring demand for our software and services.”
Added 97 New Customers
New Customers and New Deals with Existing Customers in Q1 2003 included:
Airlines Reporting Corporation, Belk, Inc., Best Buy, Campofrio, Carl Warren & Company, Carrefour, Catalina Marketing Corporation, CINECA, Comcast Cable Communications, Inc., CSK Auto, Deutsche Bank, Estee Lauder, Fraser Health Authority, Hanaro Telecom, Hudson’s Bay Company, KeyBank, Lowe’s Companies, Inc., P.F. Chang’s China Bistro, Inc., Premier, Inc., Prescription Solutions, Sanofi-Synthelabo, Telefonica, Unilever Cosmetics International, United States Postal Service, Universal Studios, University of the Nations, Warnaco, Inc., Yahoo!
Examples of Noteworthy Customer Deals from Q1 2003:
Best Buy
Best Buy has significantly expanded its relationship with MicroStrategy in order to deploy business intelligence enterprise-wide. Approximately 16,000 Best Buy employees (corporate and field) are now using MicroStrategy daily for store performance management, evaluation of marketing effectiveness, merchandising and pricing management, and supplier performance tracking. On average, 100,000 queries are fulfilled daily, permitting Best Buy staff to obtain insight into trends and patterns essential to its operations. Reflecting the vast amount of transactional-level data being harnessed, Best Buy runs its MicroStrategy applications against a 7-terabyte Oracle database hosted on Sun hardware. Additional, planned MicroStrategy-based applications include analysis and reporting of employee performance, company financials, and purchase trends by customer.
Catalina Marketing Corporation
Catalina Marketing Corporation is teaming with MicroStrategy and IBM Corporation to deliver advanced, interactive retail business intelligence. Catalina Marketing Corporation, the global leader in behavior-based marketing, provides consumers with targeted incentives, primarily at grocery and pharmacy outlets. Catalina Marketing manages one of the largest data warehouses in the world. Through its Retail Direct product, Catalina Marketing manages customer loyalty information for more than 4,500 of the largest grocery locations across the United States and internationally. After an in-depth evaluation of many of the competing products in the industry, Catalina Marketing selected the MicroStrategy Business Intelligence Platform(TM) for its scalability, functionality, and easy-to-use Web interface.
Hudson’s Bay Company
Hudson’s Bay Company, Canada’s largest retailer and oldest corporation, will deploy the MicroStrategy business intelligence platform enterprise-wide, with nearly 5,000 users expected to harness the MicroStrategy platform for reporting, analysis and information delivery. These users will include store managers, company executives, financial and marketing analysts, and outside vendor personnel. The specific, diverse applications will include reporting of store sales and advertising expenditures, merchandise management, category reviews, vendor scorecards, financial analysis, and supply chain reporting and analysis. MicroStrategy will provide visibility into Oracle and Teradata databases of 2 to 3 terabytes, and these databases are expected to grow significantly over the next three years.
Comcast Cable Communications, Inc.
Comcast Cable Communications, Inc., the country’s leading cable and broadband communications provider, has selected the MicroStrategy Business Intelligence Platform(TM) to increase internal operational efficiency and employee productivity. Comcast has more than 55,000 employees in six divisions, and serves more than 21 million customers. Comcast will utilize the MicroStrategy system to track and assess business data across functional areas to provide managers with greater insight into the company’s internal operations. Comcast will run these applications against a 1-terabyte Redbrick database.
Other Sales Highlights
MicroStrategy’s new Education offering, Perennial Education Pass (“PEP”) http://www.microstrategy.com/Education/pep.asp , was well received by MicroStrategy’s existing and new customers worldwide, resulting in more than 60 PEP transactions during this first quarter of release.
MicroStrategy’s Growing Strategic Partnerships
Signed Agreements with 12 Systems Integrators and OEMs (Original Equipment Manufacturers)
New partners include: Adastra Corporation; Delta Solutions & Technologies, Inc.; Pinpoint Solutions; Prithvi Information Solutions, LLC; Professional Innovations; Retail International Systems Consulting, Inc.; 3c Software
In Q1 2003, IBM Data Management reaffirmed its commitment to working more closely with MicroStrategy as part of its new co-selling initiative for DB2. This arrangement is believed to benefit both companies as MicroStrategy’s target market is suited well for DB2 implementations. Within the next quarter, MicroStrategy has also been invited to train IBM’s sales and technology personnel that currently focus on selling DB2 software. Accenture has developed a key analytical reporting application for the telecommunications industry using the MicroStrategy 7i platform. The application, “Accenture Communications Solutions,” will be promoted worldwide.
Continued High Praise and Recognition for MicroStrategy’s Business Intelligence Platform
MicroStrategy continued to win noteworthy praise for its software platform from customers and independent analysts alike.
* In a positive review of MicroStrategy’s 7i platform and subsequent upgrades, Ventana Research’s Senior Vice President of Research, Mark Smith, writing in a leading trade publication Intelligent Enterprise, stated, “The MicroStrategy 7i 7.2.2 release recognizes a wide scope of challenges that organizations face when deploying BI enterprise-wide: usability, manageability, reliability, and adaptability. The new user interface in MicroStrategy Web and analytical empowerment in MicroStrategy OLAP Services make MicroStrategy a good solution for a broad range of BI requirements. Organizations looking for a good balance of end-user functionality and robustness of platform for business intelligence should consider the MicroStrategy 7i suite.”
* Also in Q1 2003, MicroStrategy customer Nationwide Mutual Insurance Company won Application Development Trends’ data warehousing “2003 Innovator Award” for an application that employs MicroStrategy Web 7.1.7 and MicroStrategy Desktop query and reporting toolsets.
* In late April, the trade publication DM Review announced that two MicroStrategy-based applications, deployed by MicroStrategy customers Avnet, Inc. and the State of Tennessee’s Department of Financial Administration, were finalists for two of the publication’s 2003 “World Class Solutions” awards. MicroStrategy competitors Business Objects and Cognos received no nominations. Winners will be announced in June.
Repurchase of Notes
Since January 1, 2003, MicroStrategy has repurchased an aggregate of approximately $10.3 million in principal amount of its 7.5% Series A Unsecured Notes (“Notes”) in exchange for 317,810 shares of class A common stock. As a result of these repurchases, MicroStrategy has reduced its total principal and interest obligations under the Notes by approximately $13.7 million, consisting of approximately $10.3 million of principal and $3.4 million in total interest over the remaining term of the Notes.
During Q1 2003, the company repurchased an additional $1.8 million face value worth of its Notes in exchange for 56,053 shares of class A common stock. This repurchase was done at a discount to par, as well as a discount to the carrying value of the Notes, resulting in a $0.02 million non-cash gain on the partial early extinguishment of the Notes. The outstanding principal amount of the Notes was $61.5 million at March 31, 2003. These Notes are carried on the balance sheet at a discounted value of $44.6 million with the difference between carrying value and principal value amortized on a quarterly basis through a charge to interest expense in the company’s consolidated statement of operations. As a result of this amortization, approximately $1.0 million in non-cash interest expense was included in the Q1 2003 results.
Since March 31, 2003, the company has repurchased an additional $8.5 million face value worth of its Notes in exchange for 261,757 shares of class A common stock. This repurchase was done at a discount to par, but a premium to the carrying value of the Notes, that will result in an approximate $0.9 million non-cash loss on the partial early extinguishment of the Notes to be recognized in the second quarter of 2003. The outstanding principal amount of the Notes is approximately $53.0 million at April 29, 2003. These Notes are carried on the balance sheet at a discounted value of approximately $38.7 million at April 29, 2003. For the quarter ended June 30, 2003, the non-cash amortization expense for this difference between carrying value and principal value is expected to be approximately $0.8 million, assuming no further changes in the amount of notes outstanding as of April 29, 2003.
Going forward, based on the $53.0 million of aggregate face value of the notes outstanding as of April 29, 2003, the company expects to make semi- annual interest payments of approximately $2.0 million through maturity.
Outlook and Financial Guidance Information
The following statements are subject to risks and uncertainties described at the end of this press release. Management guidance for 2003 contained herein is valid as of today only and supersedes any previously announced guidance as to the company’s expectations for financial results for 2003.
Management offers the following guidance for the consolidated continuing operations of MicroStrategy for the quarter ending June 30, 2003:
Revenue is expected to be in the range of approximately $35 to $39 million. Net income is expected to range from a loss of approximately $0.3 million to a profit of $1.2 million. Diluted earnings per share is expected to range from a loss of approximately $0.02 per share to a profit of approximately $0.09 per share. Adjusted net earnings (which excludes approximately $0.9 million in expected non-cash discount amortization expense and approximately $0.9 million in expected non-cash losses on the early extinguishment of notes payable) is expected to range from a profit of approximately $1.5 million to $3.0 million or approximately $0.10 per share to $0.21 per share on a diluted basis. Average share count in the quarter using the diluted weighted average share count method is expected to be approximately 14.5 million.
Management offers the following guidance for the consolidated continuing operations of MicroStrategy for the full year 2003:
Consolidated revenue is expected to be in the range of approximately $150 to $160 million. License revenue for 2003 is expected to increase by approximately 10% versus 2002. Net income is expected to range from approximately $11.0 million to $16.0 million. Diluted earnings per share is expected to range from approximately $0.70 to $1.09 per share. Adjusted net earnings (which excludes approximately $3.4 million in expected non-cash discount amortization expense, approximately $0.2 million in expected non-cash amortization expense of intangible assets and approximately $0.9 million in expected non-cash losses on the early extinguishment of notes payable) is expected to be approximately $15 million to $20 million or $1.00 to $1.40 per share on a diluted basis. Average share count for the year using the fully diluted weighted average share count method is expected to be approximately 14 to 15 million. The Company also expects to have positive operating cash flow in each quarter of 2003.
About MicroStrategy Incorporated
Leadership in a Critical Market: Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Large and small companies alike are harnessing MicroStrategy’s business intelligence software to gain vital insights from their data to help them proactively enhance cost-efficiency, productivity and customer relations and optimize revenue-generating strategies. MicroStrategy’s business intelligence platform offers exceptional capabilities that provide organizations — in virtually all facets of their operations — with user- friendly solutions to their data query, reporting, and advanced analytical needs, and distributes valuable insight on this data to users via Web, wireless, and voice. PC Magazine selected MicroStrategy 7(TM) as the 2001 “Editors’ Choice” for business intelligence software.
Enterprise-Class Business Intelligence: MicroStrategy 7i(TM) is a truly integrated, enterprise-class, Web-based business intelligence platform. With MicroStrategy 7i, enterprises can now standardize on one business intelligence platform and deploy high-value business intelligence enterprise-wide. MicroStrategy 7i’s configurable query, reporting, and OLAP Web interface is designed to support all users, from casual report viewers to power analysts.
Diverse Customer Base: MicroStrategy’s customer base cuts across industry and sector lines, with over 2,000 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Hewlett-Packard, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information on the Company, or to purchase or demo MicroStrategy’s software, please visit MicroStrategy’s Web site at http://www.microstrategy.com .
MicroStrategy, MicroStrategy Business Intelligence Platform, Scalable Business Intelligence Platform Built for the Internet, MicroStrategy Web Universal, and MicroStrategy 7i 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 in the section above entitled “Outlook and Financial Guidance Information” 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; currency fluctuations; and other risks detailed in the Company’s registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2003 2002 (1)
(unaudited) (as adjusted)
Revenues
Product licenses $ 16,529 $ 14,498
Product support and other services 20,906 21,161
Total revenues 37,435 35,659
Cost of Revenues
Product licenses 790 521
Product support and other services 5,958 6,640
Total cost of revenues 6,748 7,161
Gross profit 30,687 28,498
Operating Expenses
Sales and marketing 12,683 12,470
Research and development 6,933 5,351
General and administrative 7,184 6,762
Restructuring and impairment charges – 1,232
Amortization of intangible assets 130 965
Total operating expenses 26,930 26,780
Income from operations 3,757 1,718
Financing and Other (Expense) Income
Interest income 90 230
Interest expense, including discount
amortization expense on notes
payable of $973 and $0, respectively (2,298) (1,619)
Loss on investments – (289)
Reduction in estimated cost of
litigation settlement – 3,460
Gain on early extinguishment of notes
payable 18 –
Other expense, net (38) (116)
Total financing and other (expense)
income (2,228) 1,666
Income before income taxes 1,529 3,384
Provision for income taxes 864 399
Net income 665 2,985
Dividends on and accretion of
convertible preferred stock – (2,557)
Net income attributable to common
stockholders $ 665 $ 428
Basic earnings per share $ 0.05 $ 0.05
Diluted earnings (loss) per share $ 0.05 $ (0.84)
Basic weighted average shares
outstanding 13,788 9,338
Diluted weighted average shares
outstanding 14,056 11,882
(1) On July 30, 2002, the Company’s Board of Directors approved a reverse
stock split of the Company’s common stock at a ratio of one-for-ten.
All references to common share and per common share amounts for the prior
periods presented have been retroactively restated to reflect this
reverse split.
MICROSTRATEGY INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
March 31, December 31,
2003 2002
Assets (unaudited) (audited)
Current assets
Cash and cash equivalents $ 21,929 $ 15,036
Restricted cash 6,193 6,173
Short-term investments 41 44
Accounts receivable, net 24,038 28,195
Prepaid expenses and other current
assets 4,911 5,032
Deferred tax assets, net 269 495
Total current assets 57,381 54,975
Property and equipment, net 17,313 18,471
Goodwill and intangible assets, net 659 789
Capitalized software development
costs, net 3,952 4,414
Deposits and other assets 1,147 1,224
Total Assets $ 80,452 $ 79,873
Liabilities and Stockholders’ Equity
(Deficit)
Current liabilities
Accounts payable and accrued
expenses $ 14,150 $ 15,267
Accrued compensation and employee
benefits 8,413 11,352
Accrued interest 1,304 244
Accrued restructuring costs 4,033 5,222
Deferred revenue and advance payments 26,433 23,961
Notes payable 4,824 4,698
Net liabilities of discontinued
operations 1,080 1,151
Total current liabilities 60,237 61,895
Deferred revenue and advance payments 1,783 1,381
Other long-term liabilities 2,153 2,402
Accrued restructuring costs 3,547 3,663
Notes payable 44,612 45,041
Total Liabilities 112,332 114,382
Stockholders’ equity (deficit):
Preferred stock undesignated; $0.001
par value; 4,971 shares authorized;
no shares issued or outstanding – –
Class A common stock; $0.001 par value;
330,000 shares authorized; 9,233 and
9,157 shares issued and outstanding,
respectively 9 9
Class B common stock; $0.001 par value;
165,000 shares authorized; 4,616 and
4,619 shares issued and outstanding,
respectively 5 5
Additional paid-in capital 306,722 305,334
Deferred compensation (4) (17)
Accumulated other comprehensive income 2,733 2,170
Accumulated deficit (341,345) (342,010)
Total Stockholders’ Equity (Deficit) (31,880) (34,509)
Total Liabilities and Stockholders’
Equity (Deficit) $ 80,452 $ 79,873
MICROSTRATEGY INCORPORATED
Computation of basic and diluted earnings (loss) per share
(in thousands, except per share data)
(unaudited)
Three months ended
March 31, 2003
Income Shares Per Share
(Numerator) (Denominator) Amount
Net income $ 665
Dividends on and accretion of
convertible preferred stock –
Net income attributable to
common stockholders 665
Effect of common stock:
Weighted average shares of
class A common stock – 9,172
Weighted average shares of
class B common stock – 4,616
Basic earnings per share 665 13,788 $ 0.05
Effect of dilutive securities:
Series C preferred stock – –
Series B preferred stock – –
Series A preferred stock – –
Employee stock options – 268
Diluted earnings (loss)
per share $ 665 14,056 $ 0.05
MICROSTRATEGY INCORPORATED
Computation of basic and diluted earnings (loss) per share
(in thousands, except per share data)
(unaudited)
Three months ended
March 31, 2002
Income Shares Per Share
(Numerator) (Denominator) Amount
Net income $ 2,985
Dividends on and accretion of
convertible preferred stock (2,557)
Net income attributable to
common stockholders 428
Effect of common stock:
Weighted average shares of
class A common stock – 4,685
weighted average shares of
class B common stock – 4,653
Basic earnings per share 428 9,338 $ 0.05
Effect of dilutive securities:
Series C preferred stock (4,957) 1,050
Series B preferred stock (4,585) 1,250
Series A preferred stock (894) 244
Employee stock options – –
Diluted earnings (loss)
per share $(10,008) 11,882 $ (0.84)
The numerator in the diluted loss per share calculation for the three months ended March 31, 2002 has been adjusted to add a $10.4 million loss on conversion on the series C, B and A preferred stock that would have resulted assuming settlement at the end of the period as required by the share settlement method.
The diluted loss per share calculation for the three months ended March 31, 2002 excludes series D preferred stock, which was convertible into 290,220 shares of class A common stock, because its effect would have been anti- dilutive. Employee stock options of 267,503 for the three months ended March 31, 2002 have also been excluded from the diluted loss per share calculation because their effect would have been anti-dilutive.
MICROSTRATEGY INCORPORATED
Non-Generally Accepted Accounting Principles (“Non-GAAP”) Financial
Measures
Management believes that the presentation of adjusted net earnings is helpful in understanding the ongoing operating results and cash flow indicators with respect to the Company’s core business because the adjustments made in computing adjusted net earnings are non-cash or cash related gains and expenses incurred during the period that are not associated with ongoing operating results and are not cash flow indicators of the Company’s core business operations.
* Adjusted net earnings
* (in thousands, except per share data)
* (unaudited) Three Months Ended
March 31,
2003 2002
Adjusted net earnings $ 1,750 $ 1,792
Adjusted net earnings divided by
basic weighted average shares
outstanding $ 0.13 $ 0.19
Adjusted net earnings divided by
diluted weighted average shares
outstanding $ 0.12 $ 0.15
Basic weighted average shares
outstanding 13,788 9,338
Diluted weighted average shares
outstanding 14,056 11,882
Reconciliation of net income to
adjusted net earnings
(in thousands)
(unaudited) Three Months Ended
March 31,
2003 2002
Net income $ 665 $ 2,985
Restructuring and impairment charges – 1,232
Amortization of intangible assets 130 965
Loss on investments – 289
Reduction in estimated cost of
litigation settlement – (3,460)
Gain on early extinguishment of
notes payable (18) –
Discount amortization expense on
notes payable 973 –
Other non-recurring items – (219)
Total reconciling items 1,085 (1,193)
Adjusted net earnings $ 1,750 $ 1,792
Reconciling items in computing adjusted
net earnings – Cash vs. Non-cash
(in thousands)
(unaudited) Three Months Ended
March 31,
2003 2002
Non-cash:
Restructuring and impairment charges – 36
Amortization of intangible assets 130 965
Loss on investments – 289
Reduction in estimated cost of
litigation settlement – (3,460)
Gain on early extinguishment of
notes payable (18) –
Discount amortization expense on
notes payable 973 –
Other non-recurring items – (13)
Total non-cash 1,085 (2,183)
Cash:
Restructuring and impairment charges – 1,196
Other non-recurring items – (206)
Total cash – 990
Total reconciling items $1,085 $(1,193)
MICROSTRATEGY INCORPORATED
Non-Generally Accepted Accounting Principles (“Non-GAAP”)
Financial Measures – continued
Reconciliation of net income attributable
to common stockholders to adjusted net
EBITDA
(in thousands)
(unaudited) Three Months Ended
March 31,
2003 2002
Net income attributable to common
stockholders $ 665 $ 428
Interest income (90) (230)
Interest expense 2,298 1,619
Provision for income taxes 864 399
Depreciation and amortization 2,347 2,528
Amortization of intangible assets 130 965
EBITDA before reconciling items 6,214 5,709
Reconciling items:
Restructuring and impairment charges – 1,232
Loss on investments – 289
Reduction in estimated cost of
litigation settlement – (3,460)
Gain on early extinguishment of
notes payable (18) –
Other expense 38 116
Dividends on and accretion of
convertible preferred stock – 2,557
Adjusted net EBITDA $ 6,234 $ 6,443
CONTACT: Marc Brailov of MicroStrategy Incorporated, +1-703-770-1670, cell: +1-703-407-9884, or mbrailov@microstrategy.com.
Source: MicroStrategy
Best Buy to Expand Use of MicroStrategy Enterprise-Wide
16,000 Store and HQ Employees use Reporting Software to Boost Company Efficiency
McLEAN, Va., (April 28, 2003) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that Best Buy has significantly expanded its commercial relationship with MicroStrategy permitting Best Buy to deploy business intelligence enterprise-wide. A recipient of the prestigious Data Warehousing Institute award for its innovative business performance management (BPM) applications, Best Buy expects to deploy additional MicroStrategy business intelligence software at its headquarters and stores.
Approximately 16,000 Best Buy employees (corporate and field) already use MicroStrategy daily for store performance management, evaluation of marketing effectiveness, merchandising and pricing management, and supplier performance tracking. On average, 100,000 queries are fulfilled daily, permitting Best Buy staff to obtain insight into trends and patterns essential to its operations. MicroStrategy is unaware of any business intelligence application in the world with a higher daily query volume. Reflecting the vast amount of transactional-level data being harnessed, Best Buy runs its MicroStrategy applications against a 7-terabyte Oracle database hosted on Sun hardware; this impressive data volume excludes indexes and mirroring.
Best Buy’s hundreds of suppliers also use MicroStrategy via an extranet to receive shipment compliance scorecards. According to Best Buy, this supplier extranet has more than doubled on-time, accurate shipments. The increase in accuracy is key to the improved merchandise in-stock levels for the company’s customers.
Additional, planned MicroStrategy-based applications include analysis and reporting of employee performance, company financials, and purchase trends by customer. Best Buy also will leverage MicroStrategy to improve its “clicks and mortar” integration by looking for correlations between store performance metrics and online customer behavior.
“MicroStrategy’s business intelligence software is key to Best Buy’s efficiency because it keeps us cost-efficient, productive and customer-responsive,” said Harold Knutson, Vice President of Corporate Systems and Data for Best Buy. “MicroStrategy’s industrial-strength technology offers outstanding Web architecture and deployability, ease-of-use for our thousands of users, proven scalability, and powerful analytics.”
About MicroStrategy Incorporated
Leadership in a Critical Market: Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Large and small companies alike are harnessing MicroStrategy’s business intelligence software to gain vital insights from their data to help them proactively enhance cost-efficiency, productivity and customer relations and optimize revenue-generating strategies. MicroStrategy’s business intelligence platform offers exceptional capabilities that provide organizations — in virtually all facets of their operations — with user- friendly solutions to their data query, reporting, and advanced analytical needs, and distributes valuable insight on this data to users via Web, wireless, and voice. PC Magazine selected MicroStrategy 7(TM) as the 2001 “Editors’ Choice” for business intelligence software.
Enterprise-Class Business Intelligence: MicroStrategy 7i(TM) is a truly integrated, enterprise-class, Web-based business intelligence platform. With MicroStrategy 7i, enterprises can now standardize on one business intelligence platform and deploy high-value business intelligence enterprise-wide. MicroStrategy 7i’s configurable query, reporting, and OLAP Web interface is designed to support all users, from casual report viewers to power analysts.
Diverse Customer Base: MicroStrategy’s customer base cuts across industry and sector lines, with over 1,900 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Hewlett-Packard, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information on the company, or to purchase or demo MicroStrategy’s software, please visit MicroStrategy’s Web site at http://www.microstrategy.com.
This press release may include statements that may constitute “forward- looking statements,” including its 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; 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, MicroStrategy Business Intelligence Platform, MicroStrategy 7, MicroStrategy 7i 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.
Marc Brailov
MicroStrategy Incorporated
(703) 770-1670
mbrailov@microstrategy.com
Source: MicroStrategy
MicroStrategy Repurchases Additional $10.3 Million of Note Debt
MicroStrategy® Incorporated (Nasdaq: MSTR – News), a leading worldwide provider of business intelligence software, today announced that, on April 16, 2003, it repurchased approximately $8.5 million in principal amount of its 7 1/2 % series A unsecured notes (the “Notes”) in exchange for 261,757 sha
McLEAN, Va., (April 18, 2003) –
MicroStrategy® Incorporated (Nasdaq: MSTR – News), a leading worldwide provider of business intelligence software, today announced that, on April 16, 2003, it repurchased approximately $8.5 million in principal amount of its 7 1/2 % series A unsecured notes (the “Notes”) in exchange for 261,757 shares of the company’s class A common stock in negotiated transactions. Since January 1, 2003, MicroStrategy has repurchased approximately $10.3 million in principal amount of the Notes in exchange for 317,810 shares of class A common stock. As a result of those repurchases, MicroStrategy has reduced its obligations under the Notes by approximately $13.7 million, consisting of approximately $10.3 million of principal and $3.4 million in total interest over the remaining term of the Notes.
Since the original issuance of the Notes on June 24, 2002, the company has repurchased approximately $27.2 million in principal amount of the Notes in exchange for an aggregate of 768,134 shares of class A common stock and $946,140 cash. These repurchases have reduced MicroStrategy’s obligations under the Notes by approximately $38.7 million in the aggregate, consisting of approximately $27.2 million of principal and $11.5 million in total interest over the term of the Notes.
The company currently expects to pay interest on the remaining outstanding Notes at an annualized rate of 7.5% or approximately $4.0 million based on the $53.0 principal amount of the Notes remaining outstanding as of April 16, 2003.
MicroStrategy originally issued a total of $80.3 million of principal amount of Notes as of June 24, 2002. Under the Indenture pursuant to which the Notes were issued, the company has the right, at any time prior to the June 24, 2007 maturity date, to prepay the Notes in full at par or to mandatorily convert the Notes into shares of class A common stock at a conversion price equal to 80% of the dollar-volume weighted average trading price per share for all round lot transactions in the stock on the Nasdaq National Market for the ten trading days ending two days prior to the date that written notice of conversion has been given. The company may also repurchase, convert or redeem a portion of the outstanding Notes so long as the combination of redemptions, conversions and repurchases does not reduce the outstanding principal amount of the Notes below 60% of the original outstanding principal amount of the Notes, or approximately $48.2 million, unless all of the remaining outstanding Notes are redeemed or converted by the company.
After giving effect to all Note repurchases by the company to date, an aggregate principal amount of approximately $53.0 million of the Notes, or 66.0% of the total original principal amount of the Notes, remains outstanding. As a result, the company may redeem, convert or repurchase an aggregate principal amount of up to approximately $4.8 million of additional Notes without being required to redeem or convert all of the remaining outstanding Notes.
This press release does not constitute an offer to buy or a solicitation of an offer to sell any of the Notes.
About MicroStrategy Incorporated
Leadership in a Critical Market: Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Large and small companies alike are harnessing MicroStrategy’s business intelligence software to gain vital insights from their data to help them proactively enhance cost-efficiency, productivity and customer relations and optimize revenue-generating strategies. MicroStrategy’s business intelligence platform offers exceptional capabilities that provide organizations — in virtually all facets of their operations — with user- friendly solutions to their data query, reporting, and advanced analytical needs, and distributes valuable insight on this data to users via Web, wireless, and voice. PC Magazine selected MicroStrategy 7(TM) as the 2001 “Editors’ Choice” for business intelligence software.
Enterprise-Class Business Intelligence: MicroStrategy 7i(TM) is a truly integrated, enterprise-class, Web-based business intelligence platform. With MicroStrategy 7i, enterprises can now standardize on one business intelligence platform and deploy high-value business intelligence enterprise-wide. MicroStrategy 7i’s configurable query, reporting, and OLAP Web interface is designed to support all users, from casual report viewers to power analysts.
Diverse Customer Base: MicroStrategy’s customer base cuts across industry and sector lines, with over 1,900 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 500 systems integrators and application development and platform partners, including IBM, PeopleSoft, Hewlett-Packard, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information on the company, or to purchase or demo MicroStrategy’s software, please visit MicroStrategy’s Web site at http://www.microstrategy.com.
This press release may include statements that may constitute “forward- looking statements,” including its 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 Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i 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; 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, MicroStrategy Business Intelligence Platform, MicroStrategy 7, MicroStrategy 7i 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.
Marc Brailov
MicroStrategy Incorporated
(703) 770-1670
mbrailov@microstrategy.com
Source: MicroStrategy