MCLEAN, Va./Utrecht, November 2004 -- MicroStrategy Inc. (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, announced its financial results for the three- month period ended September 30, 2004 (the third quarter of its 2004 fiscal year), reporting GAAP earnings of USD 7.22 per share on a diluted basis. Third quarter 2004 revenue was USD 60.6 million versus USD 42.8 million in the third quarter of 2003, a 42% increase. Revenue in the second quarter of 2004 was USD 49.9 million.
Third quarter 2004 license revenue was USD 25.8 million versus USD 17.7 million in the third quarter of 2003, a 46% increase and the highest quarterly license revenue amount since the third quarter of 2000. The increase in license revenue during the third quarter of 2004 is primarily due to closing multiple transactions with license revenues in excess of a million dollars during the quarter. License revenue in the second quarter of 2004 was USD 18.3 million.
Revenue from services in the third quarter of 2004 increased 38% over the third quarter of 2003 primarily due to growth in our maintenance business. MicroStrategy's cash plus long-term investments at the end of the third quarter of 2004 was USD 101.2 million versus USD 38.7 million at the end of the third quarter of 2003 and USD 87.2 million at the end of the second quarter of 2004.
Net income for the third quarter of 2004, determined in accordance with GAAP, was USD 122.0 million, or USD 7.22 per share on a diluted basis. This result included a non-cash income tax benefit of USD 103.6 million as a result of the release of the Company's US and Canadian deferred tax asset valuation allowance in the amount of USD 125.4 million. Third quarter 2004 income from operations was USD 18.8 million, or 31% of revenue, versus USD 7.0 million, or 16% of revenue, in the third quarter of 2003 and USD 12.2 million, or 24% of revenue, in the second quarter of 2004.
"With very robust operating income and sharp increases in both overall and license revenues, Q3 2004 was an outstanding quarter for MicroStrategy," said MicroStrategy President and CFO Eric F. Brown. "MicroStrategy's fundamentals continue to be solid as evidenced by a 31% operating income margin for the third quarter."
"Our excellent operating results reflect the effect of three highly successful new product launches since last November that have opened up new markets to MicroStrategy," said MicroStrategy Chairman and CEO Michael J. Saylor. "With leadership in the reporting space and further product upgrades planned in the next year, we are well positioned for future growth."
New customers – Microstrategy added 90 new customers - and new deals with existing customers in Q3 2004 included amongst others: FBI, Metro and Carrefour.
For a full version of the third quarter 2004 financial results, please surf to: www.microstratgey.com
Do you want more information about MicroStrategy, or an interview with Michel Haagmans, country manager MicroStrategy Benelux, please contact Margienke Bos at Influx PR: 055 3663034 or margienke@influx-pr.com
About Microstrategy
Founded in 1989, MicroStrategy (Nasdaq: MSTR) 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 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 2,800 enterprise-class customers, including General Motors, Yahoo!, Visa International, 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, HP and Teradata.
For more information: www.microstrategy.com. Or contact Mrs Miranda Tollenaar: +31 (0)30 2408116, mtollenaar@microstrategy.com