The company has struggled since it restated 1998 and 1999 financial results because of accounting irregularities. But this was its second consecutive profitable quarter.
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.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.