2012 Q4 Form 10-K Financial Statement

#000119312514048295 Filed on February 12, 2014

View on sec.gov

Income Statement

Concept 2012 Q4 2012 Q3 2012 Q2
Revenue $156.0M $136.1M $135.3M
YoY Change -2.67% -3.97% -2.05%
Cost Of Revenue $36.40M $34.85M $34.06M
YoY Change 38.4% -4.96% -1.4%
Gross Profit $119.5M $101.2M $101.3M
YoY Change -2.5% -3.62% -2.26%
Gross Profit Margin 76.64% 74.39% 74.83%
Selling, General & Admin $80.80M $72.01M $71.76M
YoY Change 5.48% -13.31% -13.81%
% of Gross Profit 67.59% 71.13% 70.86%
Research & Development $25.10M $21.92M $19.02M
YoY Change 42.61% 7.27% 12.7%
% of Gross Profit 21.0% 21.65% 18.78%
Depreciation & Amortization $6.300M $5.400M $4.900M
YoY Change 43.18% 8.0% 13.95%
% of Gross Profit 5.27% 5.33% 4.84%
Operating Expenses $105.9M $93.93M $90.78M
YoY Change 12.42% -9.25% -9.35%
Operating Profit $13.65M $7.302M $10.49M
YoY Change -51.97% 375.08% 201.96%
Interest Expense $100.0K $0.00 $0.00
YoY Change 0.0% -100.0%
% of Operating Profit 0.73% 0.0% 0.0%
Other Income/Expense, Net -$1.800M -$72.00K $1.037M
YoY Change -357.14% -101.65% -474.37%
Pretax Income $11.90M $7.231M $11.52M
YoY Change -23.72% 22.66% 260.58%
Income Tax $3.600M $2.097M $3.596M
% Of Pretax Income 30.25% 29.0% 31.2%
Net Earnings $8.240M $4.763M $7.271M
YoY Change -8.44% -3.21% 152.03%
Net Earnings / Revenue 5.28% 3.5% 5.37%
Basic Earnings Per Share $0.73 $0.43 $0.67
Diluted Earnings Per Share $0.73 $0.43 $0.65
COMMON SHARES
Basic Shares Outstanding 11.05M shares 10.88M shares
Diluted Shares Outstanding 11.20M shares 11.12M shares

Balance Sheet

Concept 2012 Q4 2012 Q3 2012 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $223.1M $216.6M $195.5M
YoY Change 11.77% 16.26% 1.3%
Cash & Equivalents $224.4M $216.6M $195.5M
Short-Term Investments $0.00
Other Short-Term Assets $49.90M $43.40M $40.50M
YoY Change 2.25% -7.86% -1.94%
Inventory
Prepaid Expenses
Receivables $89.04M $75.47M $78.89M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $362.0M $335.5M $314.9M
YoY Change 5.49% 8.09% 3.14%
LONG-TERM ASSETS
Property, Plant & Equipment $96.75M $101.7M $102.2M
YoY Change 1.51% 16.2% 29.57%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $8.800M $7.100M $7.800M
YoY Change 6.02% -12.35% -3.7%
Total Long-Term Assets $115.9M $120.4M $119.4M
YoY Change 4.74% 14.93% 22.11%
TOTAL ASSETS
Total Short-Term Assets $362.0M $335.5M $314.9M
Total Long-Term Assets $115.9M $120.4M $119.4M
Total Assets $477.9M $455.9M $434.3M
YoY Change 5.31% 9.81% 7.74%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $40.90M $40.00M $31.80M
YoY Change -11.85% -1.96% -15.65%
Accrued Expenses $71.80M $62.40M $56.30M
YoY Change 5.12% 13.66% 8.48%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $219.2M $205.1M $193.8M
YoY Change 0.35% 6.01% 0.84%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $43.42M $44.40M $44.33M
YoY Change -3.82% -17.78% -17.91%
Total Long-Term Liabilities $43.42M $44.40M $44.33M
YoY Change -3.82% -17.78% -17.91%
TOTAL LIABILITIES
Total Short-Term Liabilities $219.2M $205.1M $193.8M
Total Long-Term Liabilities $43.42M $44.40M $44.33M
Total Liabilities $277.6M $265.5M $255.1M
YoY Change -2.54% 5.7% 3.44%
SHAREHOLDERS EQUITY
Retained Earnings $208.9M $200.7M $195.9M
YoY Change 10.91%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $475.2M $475.2M $475.2M
YoY Change 0.0%
Treasury Stock Shares 6.405M shares 6.405M shares 6.405M shares
Shareholders Equity $200.3M $190.4M $179.2M
YoY Change
Total Liabilities & Shareholders Equity $477.9M $455.9M $434.3M
YoY Change 5.31% 9.81% 7.74%

Cashflow Statement

Concept 2012 Q4 2012 Q3 2012 Q2
OPERATING ACTIVITIES
Net Income $8.240M $4.763M $7.271M
YoY Change -8.44% -3.21% 152.03%
Depreciation, Depletion And Amortization $6.300M $5.400M $4.900M
YoY Change 43.18% 8.0% 13.95%
Cash From Operating Activities $8.700M $21.40M -$1.000M
YoY Change -69.37% 2277.78% -130.3%
INVESTING ACTIVITIES
Capital Expenditures -$2.800M -$6.700M -$15.40M
YoY Change -63.16% -37.96% -4.35%
Acquisitions
YoY Change
Other Investing Activities -$300.0K -$400.0K $1.400M
YoY Change -88.0% -111.76% -26.32%
Cash From Investing Activities -$2.900M -$7.200M -$14.00M
YoY Change -71.0% -4.0% -1.41%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.100M 5.800M 1.900M
YoY Change -131.43% 123.08% 1800.0%
NET CHANGE
Cash From Operating Activities 8.700M 21.40M -1.000M
Cash From Investing Activities -2.900M -7.200M -14.00M
Cash From Financing Activities 1.100M 5.800M 1.900M
Net Change In Cash 6.900M 20.00M -13.10M
YoY Change -53.69% -600.0% 21.3%
FREE CASH FLOW
Cash From Operating Activities $8.700M $21.40M -$1.000M
Capital Expenditures -$2.800M -$6.700M -$15.40M
Free Cash Flow $11.50M $28.10M $14.40M
YoY Change -68.06% 140.17% -25.77%

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<div> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> <b>(1) Organization</b></p> <p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> MicroStrategy is a leading worldwide provider of enterprise software platforms. The Company&#x2019;s mission is to provide the most flexible, powerful, scalable, and user-friendly platforms for analytics, mobile, identity, and loyalty, offered either on premises or in the cloud.</p> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> The MicroStrategy Analytics Platform enables organizations to analyze vast amounts of data and distribute actionable business insight throughout an enterprise. Our analytics platform delivers reports and dashboards, and enables users to conduct ad hoc analysis and share insights anywhere, anytime, via mobile devices or the Web. The MicroStrategy Analytics Platform is comprised of MicroStrategy Analytics Enterprise<sup style="font-size:85%; vertical-align:top">&#x2122;</sup>, MicroStrategy Analytics Express<sup style="font-size:85%; vertical-align:top">&#x2122;</sup>, and MicroStrategy Analytics Desktop<sup style="font-size:85%; vertical-align:top">&#x2122;</sup>. MicroStrategy Analytics Enterprise lies at the core of the MicroStrategy Analytics Platform and combines the agility and productivity of self-service visual data discovery with the security, scalability, and governance features of enterprise-grade business intelligence. MicroStrategy Analytics Desktop is a standalone desktop tool, available free of charge and designed to enable business users to analyze and understand their data. With MicroStrategy Analytics Desktop, business users can create stunning data visualizations and dashboards that provide new insight and new understanding in just minutes. MicroStrategy Analytics Express is a cloud-based service that is designed to be the fastest way for companies, departments, and small businesses to build and deploy MicroStrategy-caliber analytics with little or no assistance from IT professionals. MicroStrategy Analytics Express guides business people through a streamlined flow &#x2013; from data-to-discovery-to-dashboard-to-distribution.</p> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> MicroStrategy Mobile is designed to allow organizations to rapidly build information-rich applications that combine multimedia, transactions, analytics, and custom workflows. The powerful code-free platform approach is designed to reduce the costs of development and enable organizations to get powerful mobile business apps quickly and cost-effectively. MicroStrategy Mobile is an easy, fast, and cost-effective way to mobilize an organization&#x2019;s information systems, including its data warehouses, business intelligence, ERP, CRM, and Web applications that are currently accessible only on the desktop. Using MicroStrategy Mobile, customers can transform their entire workforce into a connected and more productive mobile workforce with mobile apps that are significantly more robust than their Web-only counterparts. With mobile access to critical corporate data and systems that drive the business, employees can have a virtual office in their hands at all times.</p> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> MicroStrategy Cloud brings together enterprise analytics, analytical databases, and data integration capabilities in a high performance integrated environment. MicroStrategy Cloud offers on-demand access to the full breadth of the MicroStrategy Analytics Platform and MicroStrategy Mobile capabilities and is optimized for a variety of enterprise applications. Compared to traditional on-premises approaches, MicroStrategy Cloud is quicker to deploy, is more flexible, delivers consistent high-level performance, and offers significant financial advantages. We offer MicroStrategy Cloud as a managed service to organizations that want the power of enterprise analytics and the ability to quickly build and deliver enterprise mobile apps that harness the potential of Big Data analytics.</p> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> The MicroStrategy Loyalty Platform, branded as MicroStrategy Alert, is a next-generation, mobile customer loyalty and engagement solution. It is designed to help retailers harness the power of mobile technology by providing a mobile engagement channel to their customers for targeted marketing, commerce, and loyalty. MicroStrategy Alert is offered as a subscription-based service. It includes a consumer-facing branded mobile app; a campaign management system to create and launch targeted campaigns and publish content, as well as design target segments; and a library of content connectors to synchronize content from customers&#x2019; existing Websites and social pages with the MicroStrategy Alert-powered mobile app.</p> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> The MicroStrategy Identity Platform, branded as MicroStrategy Usher, is a mobile identity solution that can deliver biometric-enhanced security to applications and business processes across an enterprise. MicroStrategy Usher can replace ID cards, key cards, employee badges, and passwords with a single mobile identity that is biometrically linked to its owner, cryptographically linked to its owner&#x2019;s phone, and dynamically linked to the enterprise&#x2019;s existing identity repositories. MicroStrategy Usher&#x2019;s architecture leverages three-factor authentication, out-of-band channels, time-limited codes, and bidirectional public key infrastructure encryption to offer enterprises increased protection against fraud and cybercrime. MicroStrategy Usher is designed to allow users to log in to applications, unlock doors, validate one another&#x2019;s identity, and authorize transactions more securely, using their MicroStrategy Usher mobile identities. Furthermore, MicroStrategy Usher uses the MicroStrategy Analytics Platform to support behavior monitoring and the detection of abnormal activity for even greater security. MicroStrategy Usher is offered as a subscription-based service.</p> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> The MicroStrategy Analytics Platform, MicroStrategy Mobile, and MicroStrategy Cloud together with related product and support services, continue to generate the vast majority of our revenue. During 2013 and 2012, we did not generate significant revenues from the MicroStrategy Loyalty Platform or the MicroStrategy Identity Platform.</p> </div>
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0.06 pure
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CY2013 us-gaap Revenue Recognition Deferred Revenue
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<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b><i>(j) Deferred Revenue and Advance Payments</i></b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> Deferred&#xA0;revenue and advance payments related to product support, subscription services, and other services result from payments received prior to the performance of services for technical support, subscription, consulting, and education. Deferred revenue and advance payments related to product licenses result primarily from multiple-element arrangements that include future deliverables. Deferred revenue comprises deferred product licenses and subscription services, deferred product support, or other services revenue based on the objective fair value of the multiple elements of the arrangement, except for software licenses for which the Company does not have an objective measure of fair value. The Company offsets its accounts receivable and deferred revenue for any billed and unpaid items included in deferred revenue and advance payments.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> As of December&#xA0;31, 2013, the Company has entered into certain additional agreements that include future minimum commitments by the Company&#x2019;s customers to purchase products, subscription services, product support, or other services through 2018 totaling approximately $119.7 million. As of December&#xA0;31, 2012, the future minimum commitments by the Company&#x2019;s customers to purchase products, subscription services, product support, or other services through 2017 totaled approximately $110.4 million. These future commitments are not included in deferred revenue balances. Revenue relating to such agreements will be recognized during the period in which all revenue recognition criteria are met. The timing and ultimate recognition of any revenue from such customer purchase commitments depend on the customers&#x2019; meeting their future purchase commitments and the Company&#x2019;s ability to meet its associated performance obligations related to those purchase commitments.</p> </div>
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CY2013 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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42.03
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0.000 pure
CY2013 us-gaap Net Cash Provided By Used In Operating Activities
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29934000
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2.35
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CY2013 us-gaap Stock Issued During Period Shares Stock Options Exercised
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CY2013 us-gaap Concentration Risk Credit Risk
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2281000
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2016
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CY2012 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0.006 pure
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0 shares
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0
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2000
CY2012 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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587000
CY2012 us-gaap Licenses Revenue
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150462000
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153214000
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143000
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2500000
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