Micro Strategy Declares Quarterly Results

by Paul Wilson | Sunday, Jan 29, 2012 | 400 views

Data mining software maker Micro Strategy (NASDAQ:MSTR) declared its quarterly results. Profits for the company rose a record 15 percent to $160.3 millions. Net income was $9 million, or 81 cents per share, missing the average analyst estimate of 92 cents. The company has been able to perform exceedingly well as results over the previous year stood at $135 million at the same period. Revenue increased 15 percent to $160.3 million, the highest quarterly revenue total in company history. Micro strategy said revenue from product licenses, product support and other service revenue all increased during the period.

The company also saw a significant increase in its expenses due to increased headcount and related expenses, particularly for engineering and sales personnel. Expenses stood at $130 million. Product licenses revenues for the fourth quarter of 2011 were $54.5 million, versus $47.7 million for the fourth quarter of 2010, a 14 percent increase.

Product support and other services revenues for Micro Strategy’s core business intelligence segment were up 16 percent to $99.5 million against $85.8 million a year earlier. The company is expecting the social media platform to help improve its revenue significantly. In the last few years social media has transformed how people and companies interact, as well as how the technology industry communicates and conducts research. We believe the need for improved intelligence system and better customer process could provide the company with clients over the future.

Investors however were not in a good mood as the stock plunged during the trading session. Micro Strategy’s shares plunged early in the day on the miss but by afternoon its stock price was up $1.88 to $116.53. Its shares have traded between $100.86 and $178.58 in the past 52 weeks. We maintain a neutral outlook on the stock for the time being.


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