Jul 29, 2002 (08:07 PM EDT)
MicroStrategy Turns Profit Despite Slower Sales
Read the Original Article at InformationWeek
Despite slower sales, business-intelligence software vendor MicroStrategy Inc. continued its march back into the black in its second quarter. The company reported net income of $27.5 million, or 24 cents per share, on sales of $36.8 million, compared with a $33.3 million loss, or 8 cents per share, on sales of $47.6 million in the same period last year.
The results marked the second consecutive quarter that MicroStrategy has turned a profit using generally accepted accounting principles. The company has struggled since it restated its 1998 and 1999 financial results because of accounting irregularities.
"The business-intelligence market continues to hold up in the face of a difficult macroeconomy," CEO Michael Saylor says. "We're seeing renewed interest in fraud-detection, risk-management, loss-prevention, [and] financial-reporting applications," he says. Customers are also using MicroStrategy's business-intelligence platform to build asset-management, inventory-control, and marketing-optimization apps.
Product license revenue in the quarter ended June 30 fell 26%, to $15.0 million, from $20.3 million one year ago, while revenue from product support and other services fell 23%, to $36.8 million, from $47.6 million.
The bottom-line profit includes a number of one-time charges for restructuring costs and losses on investments, and one-time gains of $7.9 million for reduced estimated litigation settlement costs and $16.8 million attributed to the termination of a contract with Exchange Applications Inc. MicroStrategy's bottom line without the one-time charges and gains was $4.9 million, or 5 cents per share.