Latest Business Intelligence News
MicroStrategy Announces New Version of its 7i Business Intelligence Platform Tailored to Help Companies Implement Transparent Financial Reporting Systems
Exceptional Capabilities & Speed of Deployment
McLEAN, Va., (September 09, 2002) –
Addressing the urgent new industry need for transparent financial tracking and reporting, MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today unveiled a new version (7.2.1) of its MicroStrategy 7i (TM) platform designed specifically to meet the demanding new requirements for financial reporting and analysis imposed on business by new government mandates. MicroStrategy believes that its product contains the most sophisticated, yet easy-to-use features for this market.
“MicroStrategy’s new financial reporting features are specifically designed to help public companies, who now face new statutory requirements, get better visibility into their financial records and allow their officers to certify their statements with confidence,” said MicroStrategy’s Vice Chairman and COO Sanju Bansal. “Of no less importance, these new features allow very fast deployment of Web-based financial reporting systems — companies can deploy an operational system within 90-120 days rather than the usual 6-12 months.”
Limitations of Existing Financial Reporting Systems
MicroStrategy underscored that some financial systems cannot provide the financial transparency needed to meet the requirements of new SEC rules and the new federal Sarbanes-Oxley statute. The company said that some accounting systems provide only rudimentary reporting functionality, lack analytic breadth, and cannot provide interactive data analysis to a wide population of users. MicroStrategy also noted that existing budgeting and planning applications offered by Hyperion and Cognos are unable to drill down to the full depths of transactional data and cannot perform automated fraud or anomaly detection.
New Financial Reporting Capabilities in MicroStrategy 7i
The latest release of MicroStrategy’s 7i platform includes new financial report presentation and analytical features that support:
* Delivery of GAAP-compliant reports that can replace those typically produced manually by finance or accounting.
* Delivery of additional business reports that allow managers at all levels to focus on the performance of their organization, view trends, and spot financial anomalies.
* Seamless drill down from summary reports to the lowest level of transaction or journal entry.
* Analysis of the accounting treatment of all transactions.
* Production of highly formatted financial reports.
* Access by hundreds or thousands of users with the highest levels of data security.
* Automatic data mining for anomaly detection and proactive alerts to specified individuals whenever an anomaly is detected.
The system can also be easily modified and extended to meet expanding reporting and data requirements. Summary and detailed reports are broken into seven main areas of analysis, specifically:
1) Accounts Receivable
2) Accounts Payable
3) Balance Sheet
4) Profit and Loss Statements
5) Costs/Expenses
6) Revenues & Forecasts
7) Planning & Forecasting
MicroStrategy 7i can report on data contained in SAP, Oracle, J.D. Edwards, PeopleSoft, and Baan financial systems, as well as data in custom-developed financial applications, providing greater transparency without expensive modifications to these installed financial applications.
MicroStrategy Partners Praise MicroStrategy 7i’s New Financial Features
“MicroStrategy 7i’s new features provide businesses with tools they need to be vigilant about their financial data,” said Richard Skriletz, National Managing Principal for Business Intelligence and Data Warehousing at RCG Information Technology, Inc (www.rcgit.com). “With the system, companies can consolidate all financial data into a consistent information warehouse; put many more eyes on the data; deliver live reports that allow users to drill to the lowest level of detail at any time; and proactively scour their databases for financial anomalies.”
Doug Slemmer, President of IOLAP, a business intelligence consulting firm (www.iolap.com), pointed to a new survey (by Cap Gemini Ernst & Young and CFO Research Services and reported in Information Week) that found that more than six in 10 CFOs complain that “their budgeting, forecasting and decision-support systems are inadequate or insufficiently integrated.” He added: “With the CEOs and CFOs of all public companies now required to certify their financial reports, the obligation to monitor the accuracy of financial data is more critical than ever.”
For more information, please visit
http://www.microstrategy.com/financial_quicktour.
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 1,700 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 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; the Company’s ability to effect the sale of non-core assets on reasonable terms; 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
Marcus Corporation Enhancing Business Performance with MicroStrategy Software
Strengthening Guest Relationships at Baymont Inns & Suites and Marcus Theaters Across U.S.
McLean, Va., (September 04, 2002) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that The Marcus Corporation (NYSE: MCS), a leader in the lodging and entertainment industries, is using MicroStrategy software to anchor several business intelligence applications. Headquartered in Milwaukee, Wis., The Marcus Corporation’s limited service lodging division operates or franchises 186 Baymont Inns & Suites in 31 states and seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas.
“We chose MicroStrategy over Cognos and Business Objects because of the platform’s built-in security, Web-based architecture, and ease-of-use,” said Kim Lueck, Director of Technology at Marcus Corporation. Knox Huff, Director of Revenue Management for Marcus Corporation’s Baymont Inns & Suites Division said, “MicroStrategy lets our managers access their hotel or guest data in minutes. We can make comparisons against data five years back or 90 days forward, and we are receiving excellent customer relations management information.”
“How much value can you place on tracking your frequent stay guests?” added Lueck. “Our MicroStrategy-based system has simplified the process of identifying our corporate accounts, groups, and our business and leisure guests. We are now well-positioned to make decisions that strengthen our guest relationships and our business performance.”
End users of the MicroStrategy-based reporting application are able to view flash reports on critical data – such as occupancies, average rates, revenue per available room and future booking information – on a property basis or by selected groups of properties.
Baymont’s Guest Ovations Program application lets end users know the travel patterns and preferences of their most loyal guests. With this insight, Baymont is able to communicate with them to make attractive offers and to obtain valuable customer feedback on products, amenities and services.
In addition, hotel management can track room sales volume from major accounts with the National Accounts and Corporate Tracking application. The MicroStrategy platform also anchors a business intelligence application that tracks ticket sales by theatre, film or ticket type, for all of Marcus’ theatre properties.
About Marcus Corporation
Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. The company’s limited service lodging division operates or franchises 186 Baymont Inns & Suites in 31 states and seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas. Marcus Theatres owns or manages 490 screens at 47 locations in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin. Marcus Hotels and Resorts owns or manages 11 hotels and resorts in Wisconsin, California, Minnesota, Missouri and Texas, and one vacation club in Wisconsin. For more information, visit the company’s Web site at http://www.marcuscorp.com.
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 1,700 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 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; the Company’s ability to effect the sale of non-core assets on reasonable terms; 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.
Alka Nayyar
MicroStrategy Incorporated
(703) 847-4897
anayyar@microstrategy.com
Source: MicroStrategy
Northeast Companies Selecting MicroStrategy Software
35 Sales in 2002â??s First Half â?? Worth Over $5 Million
McLEAN, Va. (August 28, 2002) –
MicroStrategy® Incorporated (NASDAQ: MSTRD), a leading worldwide provider of business intelligence software, today announced that in the first half of 2002 it secured 35 new sales in the Northeast region with companies that will use its MicroStrategy Business Intelligence Platform(TM) to help “drive efficiency, productivity and customer relations.” These sales (in NY, NJ, PA, RI, CT and DE) were to both new and existing customers who collectively licensed and purchased more than $5 million in MicroStrategy software and services. These customers include such diverse companies as Bed, Bath & Beyond Inc., CVS, Esteé Lauder, Foot Locker, Inc., J.P. Morgan Chase, Keyspan Corporation, Liz Claiborne, Metropolitan Life, PPL Corporation, TeleSpectrum Worldwide Inc., The Penn Traffic Company and Waterford Wedgwood.
“With the MicroStrategy platform, KeySpan is able to ensure homeowners and businesses throughout New York have enough energy to heat their homes and offices and run their hot water heaters,” said Joan Hughes, section manager, IT sales, marketing and corporate data warehouse at KeySpan. “MicroStrategy provides the analytical capabilities and world-class system availability we need for our mission-critical business intelligence applications.” KeySpan Corporation (NYSE: KSE) is the largest distributor of natural gas in the Northeast, with 2.5 million gas customers and more than 12,000 employees. KeySpan is also the largest investor-owned electric generator in New York State and operates Long Island’s electric system serving 1.1 million customers.
“Our success in generating new business in the Northeast demonstrates the wide utility and broad capabilities of MicroStrategy’s business intelligence software,” said Sanju Bansal, MicroStrategy’s Vice Chairman and COO. “Our enterprise-class software offers companies the capability to make fuller use of their data, to gain vital new intelligence from it, and to make proactive decisions that can drive efficiency, productivity and customer relations.”
MicroStrategy’s Success with Top Companies Worldwide
According to the 2002 Fortune 500® listing of top domestic companies, MicroStrategy customers include four of the top five diversified financial companies, four of the top five commercial banks, and seven of the top ten pharmaceutical companies. In the Fortune 2002 Global 500 list, MicroStrategy boasts as customers eight of the top ten telecommunications companies and six of the top ten automotive companies. Additionally, in a report on the “Top 200 Global Retailers” by Deloitte Touche Tohmatsu and STORES Magazine, six of the top ten retail organizations listed are MicroStrategy customers.
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 1,700 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 systems integrators and application development and platform partners, including IBM, PeopleSoft, Compaq, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTRD. 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; the Company’s ability to effect the sale of non-core assets on reasonable terms; 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
California Companies Choosing MicroStrategy Software
California Sales in First Half of 2002 Up More than 60% From 2001’s Second Half
McLEAN, Va., (August 23, 2002) –
MicroStrategy® Incorporated (Nasdaq: MSTRD), a leading worldwide provider of business intelligence software, today announced that in the first half of 2002 it secured 40 new deals in California with companies that will use its MicroStrategy Business Intelligence Platform(TM) to help “drive efficiency, productivity and customer relations.” These deals were both to new and existing customers who collectively purchased more than $3 million in MicroStrategy software and services in the first six months of 2002, up from $1.8 million in the second half of 2001. Customers include such diverse companies as 21st Century Insurance, ePredix, First Franklin Financial Corp., Harmonic Communications, ProcessClaims and Yahoo! Inc.
“We selected MicroStrategy for its leadership in the business intelligence marketplace, as well as the intuitive reporting, analysis and information delivery capabilities of its platform offering,” said Harmonic Communications’ CTO Adam Block. “Harmonic’s core analytic capabilities rely on being able to extract insight from large amounts of disparate data in the underlying data warehouse, and to create both standard and custom reports quickly according to client needs.” Harmonic Communications is a global provider of marketing and media optimization software and services.
“Our growing success in generating new business in California demonstrates the wide utility and broad capabilities of MicroStrategy’s business intelligence software,” said Sanju Bansal, MicroStrategy’s Vice Chairman and COO. “Our enterprise-class software offers companies the capabilities to make much fuller use of their data, to gain vital new intelligence from it, and to make proactive decisions that can drive efficiency, productivity and customer relations.”
MicroStrategy’s Success with Top Companies Worldwide
According to the 2002 Fortune® listing of top domestic companies, MicroStrategy customers include four of the top five diversified financial companies, four of the top five commercial banks, and seven of the top ten pharmaceutical companies. In the Fortune 2002 Global 500 list, MicroStrategy boasts as customers eight of the top ten telecommunications companies and six of the top ten automotive companies. Additionally, in a report on the “Top 200 Global Retailers” by Deloitte Touche Tohmatsu and STORES Magazine, six of the top ten retail organizations listed are MicroStrategy customers.
About MicroStrategy
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 1,700 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 systems integrators and application development and platform partners, including IBM, PeopleSoft, Compaq, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTRD. 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; the Company’s ability to effect the sale of non-core assets on reasonable terms; 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 Announces Intention to Extend Platform to Run on Sun Solaris(TM) 9 Operating System
MicroStrategy® Incorporated (NASDAQ: MSTRD), a leading worldwide provider of business intelligence software, today announced its intended support for the Solarisâ?¢ 9 Operating Environment, Sun Microsystemsâ?? (Nasdaq: SUNW) latest update to its UNIX® operating system
McLEAN, Va., (August 19, 2002) –
MicroStrategy® Incorporated (NASDAQ: MSTRD), a leading worldwide provider of business intelligence software, today announced its intended support for the Solaris(TM) 9 Operating Environment, Sun Microsystems’ (Nasdaq: SUNW) latest update to its UNIX® operating system. MicroStrategy expects to make its MicroStrategy 7i(TM) business intelligence platform available on Solaris 9 platform, enabling organizations using this operating system to gain vital insight from their data — helping them proactively enhance cost-efficiencies, productivity and customer relations and optimizing their revenue-generating strategies.
“We’re excited about MicroStrategy’s move to make MicroStrategy 7i available on Solaris 9,” said Andy Ingram, vice president, Solaris marketing for Sun Microsystems. “Solaris 9 is receiving broad support from our partners and customers as the platform continues to deliver the security, manageability and performance that enterprises require to increase IT service levels. With the availability of MicroStrategy 7i on Solaris 9, customers will be able to take immediate advantage of business intelligence functionality on the leading operating environment.”
“This will be a very significant technological milestone for MicroStrategy,” said Sanju K. Bansal, vice chairman and chief operating officer of MicroStrategy Incorporated. “The new release is expected to help further boost our already impressive customer base.”
The first phase of this effort was completed in the fourth quarter of 2000 with the release of the Java(TM)-based version of the MicroStrategy Software Development Kit (MicroStrategy SDK(TM)), which is certified to run with the Sun ONE Web Server.
MicroStrategy expects to deliver its award-winning Web-based functionality directly on the Solaris platform later this year. The thousands of organizations that rely on Sun’s leading UNIX platform will then be able to leverage their existing infrastructures to provide business intelligence applications with improved flexibility and performance.
To complete this effort, MicroStrategy intends to release a Solaris OE version of its MicroStrategy Intelligence Server(TM) early in 2003. Sun has greatly assisted MicroStrategy by providing co-engineering, and technical consulting services for the on-going project.
About MicroStrategy
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 1,700 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 systems integrators and application development and platform partners, including IBM, PeopleSoft, Compaq, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTRD. 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.
Sun, the Sun logo, Sun Microsystems, Solaris and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. UNIX is a registered trademark in the United States and other countries, exclusively licensed through X/Open Company, Ltd.
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 ability of the Company to solve the inherent technical issues involved in modifying its MicroStrategy 7i software on a timely basis so that it will compatible with the Sun Solaris 9 operating system in the periods indicated; 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; the Company’s ability to effect the sale of non-core assets on reasonable terms; 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 7, MicroStrategy SDK, 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.
Alka Nayyar
MicroStrategy Incorporated
(703) 847-4897
anayyar@microstrategy.com
Source: MicroStrategy
Roche Italy Selects MicroStrategy Business Intelligence Platform
Leading Global Pharmaceutical Company Uses MicroStrategy to Analyze and Distribute Information to its Divisions Throughout Italy
McLean, Va., (August 08, 2002) –
MicroStrategy® Incorporated (NASDAQ: MSTRD), a leading worldwide provider of business intelligence software, today announced that Roche Italy, a subsidiary of the Roche Group, selected the MicroStrategy Business Intelligence Platform(TM) to analyze and distribute data throughout Italy. The Roche Group, one of the world’s leading research-based healthcare companies active in more than 150 countries, provides products and services that address the prevention, diagnosis and treatment of disease.
Of strategic importance to Roche Group was MicroStrategy’s ability to provide analytical customer relationship management (CRM) capabilities to all user levels throughout the organization via a single, integrated platform.
“We are pleased to be working with a pharmaceutical industry leader like Roche,” said Andrea Delvò, managing director of MicroStrategy Italy. “The MicroStrategy platform provides Roche Italy with immediate access to accurate marketing and customer information, resulting in more effective decisions that drive efficiency and profitability.”
Roche Spain recently selected MicroStrategy to analyze and distribute mission-critical sales and profit information to its employees.
About Roche
Headquartered in Basel, Switzerland, Roche is one of the world’s leading research-oriented healthcare groups in the fields of pharmaceuticals, diagnostics and vitamins. Roche’s products and services address prevention, diagnosis and treatment of diseases, thus enhancing well-being and quality of life.
About MicroStrategy
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 1,700 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 systems integrators and application development and platform partners, including IBM, PeopleSoft, Compaq, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTRD. 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; the Company’s ability to effect the sale of non-core assets on reasonable terms; 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.
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; the Company’s ability to effect the sale of non-core assets on reasonable terms; 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.
Alka Nayyar
MicroStrategy Incorporated
(703) 847-4897
anayyar@microstrategy.com
Source: MicroStrategy
MicroStrategy Closes Previously Announced Preferred Stock Restructuring
MicroStrategy® Incorporated (NASDAQ: MSTRD), a leading worldwide provider of business intelligence software, today announced that it has closed its previously announced preferred stock restructuring.
MCLEAN, Va., (August 07, 2002) –
MicroStrategy® Incorporated (NASDAQ: MSTRD), a leading worldwide provider of business intelligence software, today announced that it has closed its previously announced preferred stock restructuring.
“By closing this transaction, we complete an important balance sheet restructuring that we believe is beneficial to holders of our common stock. Our capital structure is now simplified and easier for investors to understand and we have removed a significant source of uncertainty relating to potential future dilution,” said MicroStrategy’s President and Chief Financial Officer, Eric Brown.
On July 30, 2002, MicroStrategy entered into agreements with all of the holders of its Series B preferred stock, Series C preferred stock and Series D preferred stock, pursuant to which MicroStrategy agreed to redeem or exchange all of its outstanding Series B, Series C and Series D preferred stock totaling $75.5 million in stated value. The agreements provided that if the holders converted any shares of preferred stock prior to closing, the number of shares of common stock to be issued at closing would be reduced by the number of shares issued in the conversion. Holders of the preferred stock converted $32.825 million stated value of Series B preferred stock, $24.145 million stated value of Series C preferred stock and all $14.511 million stated value of Series D preferred stock into an aggregate of 695,318 shares of MicroStrategy’s Class A common stock.
As a result of these conversions, MicroStrategy issued the following consideration in redemption and exchange of the remaining outstanding shares of Series B and Series C preferred stock:
* $10 million in cash;
* $5 million in promissory notes which bear interest at a rate of 7.5% per annum, payable semi-annually;
* 697,728 shares of Class A common stock; and
* $20.96 million stated value of Series F preferred stock.
As a result of closing this restructuring, there is no longer any outstanding Series B, Series C, or Series D preferred stock. The $20.96 million stated value of newly issued Series F preferred stock is convertible into Class A common stock at a fixed conversion price of $15.00 per share, resulting in a total of 1,397,174 shares of common stock issuable upon the conversion of the Series F preferred stock. The conversion price is not subject to any resets or other adjustments (other than with respect to stock splits and similar transactions). The Series F preferred stock has a two-year maturity and will not pay dividends. At maturity, the Series F preferred stock mandatorily converts into common stock at the fixed conversion price of $15.00 per share. As part of the transactions, the preferred holders have agreed to certain trading limitations on the common stock issued in the exchange until the first anniversary of the closing or the occurrence of certain specified events.
About MicroStrategy
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 1,700 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 systems integrators and application development and platform partners, including IBM, PeopleSoft, Compaq, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTRD. 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; the Company’s ability to effect the sale of non-core assets on reasonable terms; 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 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 Wins Key Court Ruling Against Actuate Corporation
Actuate Fails in Attempt to Avoid November 4th Trial for Alleged Theft of Trade Secrets and Conspiracy
McLean, Va., (August 05, 2002) –
MicroStrategy® Incorporated (NASDAQ: MSTRD), a leading worldwide provider of business intelligence software, today announced a significant step forward in its lawsuit against rival Actuate Corporation (NASDAQ: ACTU). The lawsuit, which was filed in June 2001, alleges that Actuate and two of its senior software engineers engaged in a conspiracy to misappropriate valuable trade secrets belonging to MicroStrategy and then used those trade secrets in the design and development of Actuate’s newly released product, Actuate 6.
On August 2, 2002, the Circuit Court for Fairfax County, Virginia, denied Actuate’s motion for summary judgment, in which Actuate was seeking to have the case against it thrown out on the ground that the charges against it were not sufficiently specific. The Court ruled that MicroStrategy had met its burden to identify specifically its trade secrets and confidential information that it alleges have been misappropriated by Actuate in the design and development of Actuate 6. Trial is scheduled to commence on November 4, 2002. Among the relief that MicroStrategy is seeking is an injunction blocking the further marketing and sale of Actuate 6, a constructive trust in favor of MicroStrategy on all of Actuate’s profits generated from the sale of Actuate 6, and treble damages.
“We are pleased with the Court’s ruling,” said Jonathan F. Klein, MicroStrategy’s Vice President, Law and General Counsel. “We believe that Actuate has misappropriated our trade secrets and confidential information and look forward to proving it at trial in November.”
About MicroStrategy
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 1,500 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 systems integrators and application development and platform partners, including IBM, PeopleSoft, Compaq, 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; the ability of the company to satisfy the conditions to the closing of the preferred stock restructuring; the ability of the company to effect the sale of non-core assets on reasonable terms; 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 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 Platform Expected to Run on IBM
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that its industry-leading MicroStrategy 7iâ?¢ business intelligence platform is expected to soon run on IBM’s AIX operating system. IBM is the world’s top provider of hardware
McLEAN, Va., (August 02, 2002) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that its industry-leading MicroStrategy 7i(TM) business intelligence platform is expected to soon run on IBM’s AIX operating system. IBM is the world’s top provider of hardware and services, and the second-largest software provider in the world.
“We are delighted with MicroStrategy’s commitment to release their core product platform on IBM’s fast growing AIX operating system. The strength of both the MicroStrategy and AIX platforms will provide organizations with unsurpassed application performance,” said Mike Kerr, IBM Vice-President, Customer Set Marketing of IBM’s eServer Group. “We chose to invest in this effort as we know that our mutual customers stand to greatly benefit from our combined technology.”
“Providing our business intelligence capabilities to organizations on Unix is a very significant technological milestone for MicroStrategy and is expected to help further boost our already expanding, impressive customer base, ” said Sanju K. Bansal, vice chairman and chief operating officer of MicroStrategy Incorporated. “MicroStrategy’s business intelligence software will run on IBM’s leading Unix platform with complete feature parity to the product on Microsoft NT and Microsoft Windows platforms. We are pleased to continue working with IBM to provide our customers and partners with world-class business intelligence software.”
The first phase of this effort was completed in the fourth quarter of 2000 with the release of the Java version of the MicroStrategy Software Development Kit (MicroStrategy SDK(TM)), which is certified to run with IBM’s WebSphere on AIX. Through the SDK, MicroStrategy also recently added support for Linux on IBM’s OS/390. The next milestone will be the delivery of MicroStrategy’s Web-based functionality on AIX, which can result in significantly improved performance measures for business intelligence and enable customers to leverage their existing AIX administrative expertise. This functionality for AIX is expected to be available later this year.
The culmination of this effort is expected to be realized early in 2003 with the release of an IBM AIX operating system-certified version of MicroStrategy Intelligence Server(TM). IBM is contributing significantly to this effort by providing technology and expertise to the MicroStrategy technology team.
About MicroStrategy
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 1,500 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 systems integrators and application development and platform partners, including IBM, PeopleSoft, Compaq, 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 7, MicroStrategy SDK, 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.
Alka Nayyar
MicroStrategy Incorporated
(703) 847-4897
anayyar@microstrategy.com
Source: MicroStrategy
MicroStrategy Reports Profitability and Positive Cash Flow in Q2 2002
Company Completes Comprehensive Restructuring of Outstanding Preferred Stock
MCLEAN, Va., (July 30, 2002) –
MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced its financial results for the three-month period ending June 30, 2002 (the second quarter of its 2002 fiscal year), reporting both GAAP and pro forma profitability as well as positive net cash flow.
Second quarter 2002 revenues were $36.8 million versus $35.7 million in the first quarter of 2002 and $47.6 million in the second quarter of 2001. Net income attributable to common stockholders for the second quarter of 2002, determined in accordance with Generally Accepted Accounting Principles (GAAP), was $24.9 million or $0.24 per share. Pro forma net income for the second quarter of 2002 was $4.9 million or $0.05 per share. Pro forma net income excludes restructuring and impairment charges, amortization of goodwill and intangible assets, losses on investments, gains totaling $7.9 million attributable to a reduction in the estimated cost of the litigation settlement, and other non-recurring items, including a $16.8 million gain on the termination of the Exchange Applications, Inc. contract. A reconciliation of GAAP to pro forma earnings is included in the attached financial exhibits.
“We’re pleased to report that we have sustained profitability and returned the company to positive net cash flow. Our cash balances increased versus last quarter and we have decided to restructure all of our outstanding preferred stock in a manner that we believe is accretive to our shareholders,” said MicroStrategy President and CFO, Eric Brown. “By restructuring all of the Series B, Series C and Series D Preferred Shares outstanding, we have fixed the number of common shares issuable in connection with these securities thereby removing the capital structure uncertainty associated with any future conversions. With the restructuring of the preferred securities we eliminate redemption preferences and triggering events. We also eliminate the quarterly dividends associated with these securities which, on an annualized basis, will reduce our total dividend payments by approximately $7.6 million. In addition to this preferred security restructuring, we have decided to sell non-core assets, specifically our Angel.com and Alarm.com business units, which we expect will further improve our cash position and operating results.”
“MicroStrategy continues to achieve substantial milestones both inside and outside the company,” said MicroStrategy’s Chairman and CEO Michael J. Saylor. “The reforms MicroStrategy instituted during the last two years have been paying off handsomely. Our significantly improved budgeting and control systems have allowed us to meet or exceed our pro forma earnings guidance and become a leaner and meaner company, doing more with less,” Saylor added. “The release of the newest version of our business software platform, MicroStrategy 7i, reaffirms our technological leadership. We have also enhanced the skills of our sales staff to train them to think like CEOs, to think strategically and proactively, thus providing our customers the very best service. And to further strengthen our customer support offering, we’ve launched a new, comprehensive technical assistance program which is unmatched in the industry. We continue to win new business from the nation’s, and the world’s, leading enterprises, spanning the industrial spectrum.”
Highlights from Q2 2002
Signed Agreements with 18 Systems Integrators and OEMs (Original Equipment Manufacturers)
New partners include: Arcplan, Inc.; Automate, Inc.; Aviana Global Technologies, Inc.; Deloitte Consulting; DRT Systems; Esskay Solutions, Inc.; F3 Solutions Group; Insight Architects; Lewis Consulting Group; Paragon Computer Professionals; Premiere Intelligence/Premiere Systems; Qiva; Covansys and Rila Solutions.
Added 105 New Customers
New Customers and New Deals with Existing Customers in Q2 2002 Included:
21st Century Insurance, Agriliance, Air Canada, AT&T Wireless, BEK Barmer Ersatzkasse, Capital One, Cbeyond Communications, Charming Shoppes, Comet, Cryptologic, CVS, Einstein Brothers, Fannie Mae, First Franklin Financial, Food Lion, H&R Block Financial Advisors, IMS Health Canada, JPMorgan Chase, KeyBank, Land O’Lakes, Le Groupe Jean Coutu, Liz Claiborne, Marks & Spencer, Metropolitan Life, Vodafone Omnitel, PPL Corporation, Saputo, Shoppers Drug Mart, Souper Salad, Telefónica, Telespectrum, Texaco, The Rouse Company, Vcommerce, Waterford Wedgewood and Yahoo!.
Samples of Noteworthy Customer Deals from Q2 2002:
Food Lion
Food Lion, one of the largest supermarket chains in the United States and a member of Delhaize America, purchased MicroStrategy software and services in the second quarter of 2002 to extend its business intelligence applications across the enterprise. Food Lion associates in category management and sales will benefit from the MicroStrategy platform.
Telefónica
Telefónica, the leading telecommunications operator in the Spanish and Portuguese-speaking world, purchased additional MicroStrategy products and services to extend its business intelligence applications worldwide. The success of its current MicroStrategy applications prompted the company to deploy five additional applications over the next six months, making MicroStrategy the enterprise-wide business intelligence standard at Telefónica. The company plans to expand its web reporting applications to empower over 1,000 employees with critical financial, auditing, sales, and marketing insight.
Yahoo!
Yahoo! Inc. licensed the MicroStrategy Business Intelligence Platform(tm) to create customized data analysis tools for Yahoo!’s Data Solutions group as well as for individual retail categories, such as apparel and home and garden.
Shoppers Drug Mart
Shoppers Drug Mart, Canada’s largest retail drugstore group, selected the MicroStrategy Business Intelligence Platform(tm) in the second quarter of 2002 to be used as part of an enterprise wide business intelligence strategy. Shoppers Drug Mart plans to deploy the MicroStrategy applications to its marketing, finance, category management, and merchandising departments who will benefit from the business insight delivered by its MicroStrategy applications.
MicroStrategy Reaffirms Its Technological Leadership with Breakthrough Software Platform
In April 2002, MicroStrategy released its new, significantly enhanced version of its business intelligence software platform, MicroStrategy 7i. Winning high praise from customers and leading industry analysts alike, MicroStrategy 7i represents a technological breakthrough for the industry as it is the first truly integrated, 100-percent Web-based platform that puts a wide range of user functionality into a single business intelligence technology.
MicroStrategy 7i’s new consolidated architectural platform lets companies rapidly deploy out-of-the-box, easily customizable business intelligence applications while also meeting the needs of all of an organization’s users, including casual report viewers, power analysts, and report developers. These features allow less costly deployment of high-value business intelligence enterprise-wide — extending the productivity and efficiency benefits of business intelligence throughout a company or organization. In addition, a company’s customers, partners and suppliers also benefit, as MicroStrategy 7i’s exceptional architecture greatly facilitates the creation of extranets.
Finance Commentary
Comprehensive Preferred Stock Restructuring
On July 30, 2002, MicroStrategy entered into agreements with all the holders of its Series B, Series C, and Series D preferred stock, pursuant to which the company agreed to redeem or exchange all of the outstanding Series B, C and D preferred securities totaling $75.5 million in stated value for the following consideration (on a pre-split basis):
* $10 million in cash
* $5 million in promissory notes which will bear interest at a rate of 7.5% per annum, payable semi-annually
* 13,930,457 million shares of Class A common stock
* $20.95 million stated value in Series F preferred
The $20.95 million stated value of Series F preferred stock will be converted into common stock at a fixed conversion price of $1.50 per share, resulting in a total of 13,971,743 shares of Class A common stock issuable upon the conversion of the Series F Preferred Stock. The conversion price is not subject to any resets or other adjustments (other than with respect to stock splits and similar transactions). The Series F Preferred Stock has a two-year maturity and will not pay dividends. At maturity, the Series F Preferred stock mandatorily converts into Class A common stock at the fixed conversion price of $1.50 per share. As part of the refinancing, the preferred holders have agreed to certain trading limitations on the Class A common stock issuable in the exchange until the first anniversary of the closing or the occurrence of certain specified events.
Dividends that would have otherwise accrued at the rate of 12.5% for the $33.125 million worth of Series B and $27.825 million worth of Series C preferred have been eliminated. This is expected to save the company $7.6 million in dividends per year that would have otherwise been paid out in cash or in common stock. Additionally, the 2.9 million shares that would have been issued upon conversion of the $14.511 million of Series D at the $5.00 conversion price have also been eliminated as part of the overall restructuring transaction.
The transaction is subject to certain closing conditions, and is expected to be completed prior to the end of September 2002. The company expects to file the agreements relating to the preferred restructuring transaction on form 8-K by July 31, 2002.
The transaction is also expected to generate a one-time GAAP gain upon closing which is expected to occur in the third quarter of 2002. This gain will be excluded from the company’s pro forma results.
Proposed Non-Core Asset Sales
The company also announced that it plans to sell its two remaining non-core business units, Angel.com and Alarm.com. This sales process will be managed by the company’s Audit Committee. The proceeds from these asset sales would be used for general corporate purposes and to retire debt.
Alarm.com has developed a proprietary set of services and software that allow wireless modem enabled sensors to be installed as part of residential and commercial security systems that can be directly configured, controlled, and monitored over the internet.
Angel.com is the first sophisticated voice recognition solution designed for small and medium-size businesses. It allows organizations to build and deploy speech solutions in minutes simply using a Web browser without any complex programming or voice recognition development experience. Angel.com enabled voice sites can be used for applications such as customer support, interactive directory and catalogue services, and outbound marketing.
The company intends to complete the sale of Angel.com and Alarm.com by the end of 2002 and expects that the dispositions will result in annualized savings of approximately $2 million.
The company intends to sell these businesses for cash to the highest bidder. Michael J. Saylor has informed the Board of Directors of his intention to submit a bid for these assets. The sale will be overseen by a committee of the Board of Directors consisting solely of independent directors.
Reverse Stock Split
Effective at the close of business on July 30, 2002, the company will implement a one-for-ten reverse split of the company’s outstanding shares of Class A common stock and Class B common stock. The company’s stockholders approved a reverse stock split at nine different proposed ratios at its annual meeting of stockholders on July 23, 2002. The company will implement the reverse stock split at the ratio of one-for-ten, causing each outstanding share of Class A common stock and Class B common stock to automatically convert into one-tenth of a share of Class A common stock and Class B common stock, respectively, and reducing the number of shares of Class A common stock outstanding from approximately 58.6 million to 5.86 million and reducing the number of shares to Class B common stock outstanding from approximately 46.4 million to 4.64 million. In lieu of fractional shares, stockholders will receive a cash payment based on an average trading price of the Class A common stock prior to the effectiveness of the reverse stock split. The par value of both the Class A common stock and Class B common stock will remain at $0.001 per share and the number of authorized shares will remain at 330,000,000 shares of Class A common stock and 165,000,000 shares of Class B common stock.
Beginning on Wednesday, July 31, 2002, the Company’s Class A common stock will trade under the split adjustment with the interim ticker symbol “MSTRD.” After 20 trading days, the company expects that its ticker symbol will revert back to “MSTR.” The company’s transfer agent, American Stock Transfer & Trust Company, will mail instructions to stockholders of record regarding the exchange of certificates representing shares of Class A common stock and Class B common stock.
The company’s outstanding warrants to purchase an aggregate of 1,896,980 shares of Class A common stock, with an exercise price per share of $40.00 (the “Warrants”), listed on the Nasdaq National Market under the trading symbol “MSTRW,” automatically adjust in the event of a reverse stock split. As a result of this adjustment, the aggregate number of shares for which the Warrants are exercisable will become approximately 189,698 shares and the exercise price per share will become $400.00.
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 2002 supersedes any previously announced guidance as to the company’s expectations for financial results for 2002.
Management offers the following guidance for the consolidated continuing operations of MicroStrategy, on a pre-split basis, for the quarter ending September 30, 2002:
Revenue is expected to be in the range of approximately $33 to $37 million. Pro forma results of operations, excluding special items, are expected to range from a loss of $2 million to a profit of $2 million. Pro forma earnings per share, excluding special items, and assuming a basic weighted average share count is expected to range from a loss of approximately $(0.02) per share to $0.02 per share. Average share count in the quarter using the basic weighted average share count method is expected to be 109 – 115 million on a pre-split basis.
Management offers the following guidance for the consolidated continuing operations of MicroStrategy, on a pre-split basis, for the full year ending December 31, 2002:
Consolidated revenue is expected to be in the range of approximately $145 to $155 million. Consolidated pro forma earnings per share, excluding special items, are expected to be in the range of approximately $0.04 to $0.09 per share.
To view the Consolidated Statement of Operations, Balance Sheets and other charts please visit: http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=MSTR&script=410&layout=-6&item_id=321183.
About MicroStrategy
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 1,500 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 systems integrators and application development and platform partners, including IBM, PeopleSoft, Compaq, 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; the ability of the company to satisfy the conditions to the closing of the preferred stock restructuring; the ability of the company to effect the sale of non-core assets on reasonable terms; 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 7, MicroStrategy 7i, Scalable Business Intelligence Platform Built for the Internet 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