MicroStrategy Turns Profit Despite Slower Sales - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

MicroStrategy Turns Profit Despite Slower Sales

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.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
News
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Commentary
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
Register for InformationWeek Newsletters
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll