SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 30, 2001
---------------
MICROSTRATEGY INCORPORATED
--------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 0-24435 51-0323571
------------------------------ ----------- ------------------
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1861 International Drive, McLean, Virginia 22102
---------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (703) 848-8600
---------------------------------------------------------------------
8000 Towers Crescent Drive, Vienna,
Virginia 22182
____________________________________________________________
(Former Name or Former Address, if Changed since Last Report)
Item 5. Other Events.
On April 30, 2001, the Registrant issued a press release announcing its
financial results for the three month period ended March 31, 2001, and providing
additional outlook and financial guidance information. A copy of this press
release has been filed with this Current Report on Form 8-K as Exhibit 99.1 and
is incorporated herein by reference.
EXHIBIT DESCRIPTION
99.1 Press Release regarding the Registrant's first quarter financial
results, dated as of April 30, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MicroStrategy Incorporated
(Registrant)
By: /s/ Eric F. Brown
------------------------------
Name: Eric F. Brown
Title: President and Chief Financial
Officer
Date: May 2, 2001
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Bill Chatterton
MicroStrategy Incorporated
(703) 848-8600
IR@microstrategy.com
--------------------
MicroStrategy Announces First Quarter 2001 Results
Company Reports Revenue of $51.4 Million and a Reduction in Pro Forma Net
Operating Loss of 33 Percent
VIENNA, Va., April 30, 2001 - MicroStrategy(R) Incorporated (NASDAQ: MSTR),
a leading worldwide provider of business intelligence software, today announced
results for the three month period ended March 31, 2001, which was the first
quarter of its 2001 fiscal year.
The Company reported revenues for the first quarter of 2001 of $51.4
million compared to $50.6 million in the first quarter of 2000. The Company
reported a pro forma net operating loss, which excludes certain charges, for the
first quarter of 2001 of $23.7 million, or $0.29 per share. This compares with a
pro forma net operating loss, also excluding certain charges, for the first
quarter of 2000 of $35.4 million or $0.45 per share.
"MicroStrategy is pleased to announce a 33 percent improvement in our pro
forma operating results, while posting an increase in revenue from the first
quarter of last year during a turbulent time in the technology industry," said
Michael J. Saylor, chairman and CEO of MicroStrategy Incorporated. Eric F.
Brown, president and chief financial officer of MicroStrategy Incorporated,
added, "We have successfully taken steps to restructure our business and improve
our operating cost structure. The Q1 2001 results reflect continued improvement
in this area."
Highlights for the first quarter 2001 include:
Added 79 new customers
New customers include: Charter Communications, Chubb & Son, Deutsche
Boerse, Federal Election Commission, Ford, Quintiles, Rite Aid and Unisys.
Signed agreements with 21 OEM's and systems integrators
Agreements include: Informatica, Annuncio, Fujitsu, Razorfish, Helix,
Acumen, Orizon, Watlett, Novara Comp, Integrated Systems Management, Mascon
IT, Tata Infotech Limited, RSI, Great Lakes Technology, eJiva, Iconnix,
Performance Retail, Inc. and Conchango.
Informatica incorporated the MicroStrategy 7(TM) business intelligence platform
as the front-end presentation layer of its newly released Informatica
eMarketplace analytic application. Informatica eMarketplace helps operators of
B2B marketplaces provide buyers and suppliers with insight into market dynamics,
customer buying patterns and pricing trends.
Announced the beta version of MicroStrategy 7.1(TM)
This new release broadens the MicroStrategy 7 business intelligence platform
into the mainstream query and reporting market. It enhances the platform's open,
non-proprietary interfaces to permit developers to easily embed MicroStrategy-
enabled intelligence into any solution or application.
- Enhanced web query & reporting: MicroStrategy 7.1 offers a full range of
Web-based interfaces specifically designed for query and reporting.
Companies can choose the interface that best fits their needs from three
levels of functionality, from basic report interaction to the most advanced
analysis. In addition, MicroStrategy 7.1 supports DHTML technology for web
interfaces that are not only lightweight and browser independent, but also
as interactive and powerful as traditional desktop applications.
- OLAP Provider: This component of the MicroStrategy 7.1 platform provides
standards for third party tools such as Cognos(R) PowerPlay(R),
Microsoft(R) Excel 2000 and ODBO-compliant software from companies such as
Business Objects(R) and Brio(R), to access the scalable MicroStrategy 7
business intelligence platform. Users preferring third-party interfaces may
now access the more robust MicroStrategy engine to answer questions other
BI vendor tools cannot.
- Project Builder: The new Project Builder feature facilitates rapid and easy
deployment of the MicroStrategy platform through a three-step wizard-driven
setup process. Business intelligence application developers can now get
from install to report faster than any other comparable business
intelligence solution on the market.
- MicroStrategy -SDK(TM) 7.1 Java(TM) edition: MicroStrategy unveiled support
for Java programming and Unix platforms with the MicroStrategy SDK(TM) 7.1
Java(TM) edition. MicroStrategy's comprehensive development environment for
the MicroStrategy 7(TM) business intelligence platform provides integrated
application development on multiple platforms, such as Unix and NT. The SDK
is designed to seamlessly integrate with IBM WebSphere(R) Application
Server, IBM's e-business application deployment environment built on open-
standards based technology.
Released MicroStrategy CRM Applications(TM)
MicroStrategy's CRM applications provide the analytical backbone for operational
CRM systems by integrating data contained in customer-facing systems. Through
pre-packaged analytics, advanced segmentation capabilities and easy-to-use
analytical workflows, corporations can derive deep insight to understand
customer profiles and preferences and identify patterns of customer behavior.
MicroStrategy 7 demonstrated outstanding scalability in IBM tests
MicroStrategy 7 demonstrated a level of user scalability that allows
companies to analyze and disseminate critical information to extremely
large numbers of employees and partners. Conducted at the IBM Solution
Partnership Center, the scalability tests showed MicroStrategy 7 supported
up to 400,000 total users and 1200 concurrent users, with less than 30
seconds average response time per report.
Launched new alliance program
MicroStrategy launched a new set of alliance programs that provide
companies with more tools for achieving success selling MicroStrategy's
software. The new programs support a wider range of companies, provide
more aggressive discounts, easy access to software, dedicated resources and
free training.
Finance Commentary
------------------
Eric F. Brown, president and chief financial officer of MicroStrategy
Incoporated, made the following remarks regarding the Company's first quarter
results. "Our operating results improved as a result of several initiatives
that we put in place. We reduced operating expenses by approximately $5 million
versus the fourth quarter of 2000."
Outlook and Financial Guidance Information
------------------------------------------
The following statements are subject to risks and uncertainties described at the
end of this press release.
Management offers the following guidance for consolidated operations of
MicroStrategy, including its Strategy.com subsidiary, for the quarter ending
June 30, 2001:
Revenue is expected to be in the range of $44 to $49 million. Pro forma
results of operations, excluding special charges, are expected to be a loss of
approximately $11 to $15 million. Pro forma earnings per share, excluding
special charges, are expected to be a loss of approximately $0.15 to $0.19 per
share. The Company expects to take a charge of $15 to $25 million as a result
of the restructuring initiatives that were announced earlier in April 2001.
Management offers the following guidance for the operations of core
MicroStrategy, excluding its Strategy.com subsidiary, for the quarter ending
June 30, 2001:
Revenue is expected to be in the range of $42 to $46 million. Pro forma
results of operations, excluding special charges, are expected to be a loss of
approximately $5 to $7 million. Pro forma earnings per share, excluding special
charges, are expected to be a loss of approximately $0.07 to $0.09 per share.
Management offers the following guidance for the standalone operations of the
Strategy.com subsidiary for the quarter ending June 30, 2001:
Revenue is expected to be in the range of $2 to $3 million. Pro forma
results of operations, excluding special charges, are expected to be a loss of
approximately $6 to $8 million. Pro forma earnings per share, excluding special
charges, are expected to be a loss of approximately $0.08 to $0.10 per share.
Management offers the following guidance for the full year 2001:
Consolidated revenue is expected to be in the range of $175 to $195
million. Pro forma earnings per share, excluding special charges, are expected
to be a loss of approximately $0.57 to $0.63 per share. The Company expects to
bring the core business results to breakeven by the end of 2001. The Company
also expects that by the fourth quarter of 2001, the Strategy.com subsidiary
will contribute, on a quarterly basis, a loss of approximately $0.05 per share
or less to the consolidated earnings per share results.
The attached summary of financial highlights compares the 2001 first quarter
results to the same period last year.
MicroStrategy will hold a conference call chaired by Michael Saylor today at
5:30 p.m. (EST). Investors can call (800) 659-1025, or for international (904)
779-4707, prior to 5:30 p.m. (EST). A replay will be available for 48 hours
after the call at (800) 252-6030, or for international (402) 220-2491, with
access code 8533311. Also, a live Webcast and replay can be accessed at the
investor relation section of the MicroStrategy web site, www.microstrategy.com,
---------------------
or from the StreetEvents site, www.streetevents.com.
--------------------
About MicroStrategy Incorporated
MicroStrategy is a leading provider of business intelligence software for
Global 5000 organizations. Since 1990, the company has specialized in helping
businesses transform their extensive operational data into actionable
information. MicroStrategy's business intelligence platform gives organizations
solutions to their query, reporting, and advanced analytical needs, and
distributes insight to users via Web, wireless, and voice.
MicroStrategy 7(TM), the company's scalable business intelligence platform,
is built specifically for the Internet era. Its pure-Web architecture provides
Web reporting, security, performance and standards that are critical for
deployment over the Web. Within intranets, the company's products provide
employees with information to make better business decisions. In extranets,
extended enterprises use MicroStrategy 7 to build stronger relationships by
linking customers and suppliers via the Internet.
MicroStrategy has approximately 1,250 enterprise-class customers including
Lowe's Home Improvement Warehouse, AT&T Wireless Group, First Union Corporation
and GlaxoSmithKline. MicroStrategy also has relationships with over 200 systems
integrators, application development and platform partners including IBM,
PeopleSoft, Compaq, Informatica 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.
----------------------------
###
MicroStrategy, MicroStrategy 7,MicroStrategy 7.1, MicroStrategy SDK 7.1 Java and
MicroStrategy CRM Applications 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.
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 (the "Company") to differ materially from the forward-looking
statements. Factors that could contribute to such differences include: the
possibility that the securities class action and shareholder derivative
settlement agreements will not obtain court approval or that the other
conditions to the settlements will not be satisfied; 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 7 software on a timely basis; annual growth of
the business intelligence software market of at least thirty percent; adverse
reaction by the Company's employees, investors, customers, vendors and lenders
to the restatement of the Company's financial results or its future prospects;
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.