MicroStrategy Incorporated
02-03-10

MicroStrategy Announces Fourth Quarter 2009 Financial Results

--44% Increase in Net Income Year-Over-Year --Diluted Earnings Per Share of $1.66

MCLEAN, Va., Feb 03, 2010 /PRNewswire via COMTEX News Network/ -- MicroStrategy(R) Incorporated (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, today announced financial results for the three-month period ended December 31, 2009 (the fourth quarter of its 2009 fiscal year).

Fourth quarter 2009 revenues were $105.8 million versus $95.0 million for the fourth quarter of 2008, an 11% increase. Product licenses revenues for the fourth quarter of 2009 were $30.0 million versus $28.0 million for the fourth quarter of 2008, a 7% increase. Product support and other services revenues for MicroStrategy's core business intelligence (BI) business in the fourth quarter of 2009 were $71.5 million versus $64.0 million for the fourth quarter of 2008, a 12% increase.

Operating expenses for the fourth quarter of 2009 were $59.8 million versus $57.6 million for the fourth quarter of 2008, a 4% increase. During the fourth quarter of 2008, MicroStrategy capitalized $5.5 million in research and development costs associated with the development of its MicroStrategy 9(TM) software, while no software development costs have been capitalized since the general release of MicroStrategy 9 in March 2009.

Income from continuing operations before financing and other income and income taxes for the fourth quarter of 2009 was $26.6 million, or 25% of revenue, versus $21.3 million, or 22% of revenue, for the fourth quarter of 2008, a 25% increase. Net income for the fourth quarter of 2009 was $20.5 million, or $1.66 per share on a diluted basis, compared to $14.3 million, or $1.17 per share on a diluted basis, for the fourth quarter of 2008, a 44% increase.

For the fourth quarter of 2009, MicroStrategy's effective tax rate on income from continuing operations was 24% compared to 38% for the fourth quarter of 2008. The lower effective tax rate in the fourth quarter of 2009 was primarily attributable to increased research and development tax credits and stronger results outside the U.S.

As of December 31, 2009, MicroStrategy had cash and cash equivalents of approximately $224.8 million versus $122.9 million as of December 31, 2008, an increase of $101.9 million. As of December 31, 2009, MicroStrategy had 9,255,072 shares of class A common stock and 2,694,362 shares of class B common stock outstanding.

Announcement of MicroStrategy 9 Release 2:

MicroStrategy's latest software release was made generally available on January 22, 2010, and announced at the Company's annual user conference in Las Vegas on January 26, 2010.

MicroStrategy 9 Release 2 specifically supports the emerging and demanding needs of the new generation of Mobile Intelligence applications. Mobile Intelligence is being driven by the growth of the Mobile Internet and by the accelerating growth in mobile devices such as the Apple iPhone, iTouch, and iPad; RIM's BlackBerry; Motorola's Droid; and Google's Nexus One. Mobile Intelligence applications demand much faster performance and serve much larger user populations than traditional wired Internet applications.

"MicroStrategy is well positioned to support the escalating growth of Mobile Intelligence with our latest software release," said Michael Saylor, President and CEO of MicroStrategy. "We have focused on creating a world-class business intelligence architecture that is designed to provide the speed and performance our customers expect in the Mobile Internet era. Unlike various competitors, we have not been distracted by acquisitions and the need to refit technology into the product suite of a parent company."

High Performance at High Scale

MicroStrategy 9 Release 2 includes significant enhancements that make information flow much faster to business users, even at the highest scale of usage:

Deliver More BI with Less Effort

MicroStrategy's latest release offers numerous enhancements that enable IT staff to deliver more information with less effort, resulting in a lower total cost of ownership:

MicroStrategy is planning to host a series of 50+ events to launch its latest software release. More information is available at http://www.microstrategy.com/Software/businessintelligence.

MicroStrategy World 2010:

MicroStrategy held its 13th annual user conference, MicroStrategy World 2010, January 25-28 in Las Vegas, Nevada.

CEO Michael Saylor delivered the keynote presentation on the first day of the conference and described MicroStrategy's drive to capitalize on the evolution toward Mobile Intelligence. Saylor said, "Computing is entering its fifth generation in which desktop Internet applications are giving way to a new generation of Mobile Internet applications. In the Mobile Internet age, applications which were mildly successful when used at one's desk, suddenly become incredibly effective and valuable when consumed on the go, anywhere and anytime business is being conducted. Mobile information access will likely eclipse desktop information access in the near future. This heightened level of usage, combined with the richness of the mobile interface, will change the way information is consumed and MicroStrategy intends to be at the forefront of this wave. MicroStrategy 9 is designed to outperform competitive BI architectures, and is well-suited to provide intelligence in the age of the Mobile Internet. Our goal is to enable our customers to deliver Mobile Intelligence ahead of their competition to their employees, their suppliers, and their customers."

The event featured more than 100 educational sessions, an exhibit hall showcasing MicroStrategy partners, and an update on the Company's latest technology advances. Executives from more than 25 world-class companies presented their success strategies and experiences using BI to enhance business performance. Some of the companies that presented at MicroStrategy World 2010 included 24 Hour Fitness, AARP, Allstate Insurance, AutoTrader.com, Barclays, Cabela's, Con-way Freight, eBay, Edmunds.com, GUESS?, Lowe's Companies, Pacific Sunwear, Payless ShoeSource, Ryder System, Travelers Insurance, and Yahoo!.

At the conference, MicroStrategy recognized Citigroup's Brian L. Fox as the recipient of the MicroStrategy Individual Excellence in Business Intelligence award. Fox was recognized for his use of information dashboards to deliver advanced program analytics to Citi's customers. MicroStrategy also recognized five companies for achieving outstanding business performance with their MicroStrategy-based business intelligence applications:

AmerisourceBergen: AmerisourceBergen was recognized in the Extranet Deployment category for its InSite system, powered by MicroStrategy technology. The InSite system supports AmerisourceBergen's community pharmacy clients across the U.S. with powerful dashboards and scorecards that provide rich analytics and tailored information. The extranet allows pharmacy owners to quickly identify suspect claims that may contribute to profit leakage, and uncover opportunities to expand their business and reduce unnecessary costs. AmerisourceBergen is one of the world's largest pharmaceutical services companies, with operations primarily in the United States and Canada.

Con-way Freight: Con-way Freight was the award recipient in the Advanced Analytics category. Approximately 1,200 knowledge workers at Con-way Freight spanning all departments rely on MicroStrategy to access the company's corporate data assets. Con-way Freight uses advanced regression models to anticipate customer behavior. To continually evaluate its freight network and reduce waste, Con-way Freight has created an optimization model to monitor and enhance the flow of freight. Con-way Freight is the industry's leading less-than-truckload (LTL) freight transportation company.

Yahoo!, Inc.: Yahoo!, Inc. was recognized in the Data Scalability category. A MicroStrategy customer since 2002, Yahoo! uses MicroStrategy's software to analyze petabytes of Web traffic and ecommerce data. Yahoo! analysts generate an array of dashboards and reports to optimize the company's Web sites. Yahoo! attracts hundreds of millions of users every month through its innovative technology and engaging content and services, making it one of the most trafficked Internet destinations.

Lowe's Companies: Lowe's Companies was the award recipient in the User Scalability category. Lowe's is the second-largest home improvement retailer in the world, serving approximately 14 million customers per week. Lowe's currently has a number of MicroStrategy-based BI applications that support over 16,000 employees across a variety of business functions. Current MicroStrategy-based BI applications at Lowe's include DART (Data Access and Reporting Tool), which provides employees with greater insight into key performance metrics. Lowe's recently expanded its deployment of MicroStrategy to support a new business intelligence application for its store management, and relies on MicroStrategy 9 to provide store management teams with access to key reports and business metrics.

Ross Stores, Inc.: Ross Stores, Inc. was recognized in the Enterprise Deployment category. Across its enterprise, Ross Stores has deployed eight large-scale MicroStrategy applications, primarily focused on Merchandising, Store Operations, Store Scorecarding, Loss Prevention, and Supply Chain Efficiencies. In addition, Ross Stores relies on the MicroStrategy platform to provide labor management reporting. Ross Stores, Inc. is the nation's second largest off-price retailer with more than 1,000 stores in 27 states.

New Customers and New Deals with Existing Customers in Q4 2009 Included:

24 Hour Fitness; Aeropostale; AstraZeneca; Bank of America; Bayer HealthCare Pharmaceuticals; Bell Canada; Cabela's; Classic Residence by Hyatt; Comcast Entertainment Group; CompuCom Systems; Darden Restaurants; Dell Computer Corporation; Department of the Navy; Deutsche Bank Securities; Diageo North America; E. & J. Gallo Winery; eBay; Farmer Brothers Company; Fox Interactive Media; Freddie Mac; Fruit of the Loom; General Dynamics Advanced Information Systems; Marriott International; McDonald's Corporation; Meredith Corporation; Metropolitan Life Insurance Co.; Netflix; NV Energy; PepsiCo; Pfizer Global Manufacturing; QVC; Ryder System; Safeway; Sears Holdings Management Corporation; Starwood Hotels & Resorts Worldwide; The Cheesecake Factory; The Container Store; Thomson Reuters Markets; Wachovia Dealer Services; Yahoo!

Examples of Customer Deals from Q4 2009:

CompuCom

CompuCom, a leading IT outsourcing company, has chosen MicroStrategy as its BI platform to provide sales, services, and financial reporting capabilities. CompuCom plans to consolidate two disparate BI reporting tools and use MicroStrategy as its single business intelligence platform. With MicroStrategy, CompuCom end users, including Sales Analysts, Financial Analysts, and Customer Representatives, will have detailed insights into vital data related to their business areas. CompuCom personnel will be able to take advantage of MicroStrategy's intuitive "drill anywhere" feature, which enables users to rapidly generate reports by surfing through the data warehouse for new combinations of the data they need. By consolidating its reporting environment on MicroStrategy, CompuCom will be able to reduce the overall number of reports required, as well as reduce the time needed to maintain its BI infrastructure.

Farmer Brothers Company

Farmer Brothers Co. is the nation's largest direct-store delivery business for coffee and allied products. Farmer Brothers recently expanded its deployment of MicroStrategy for enhanced operational reporting and analytics. Farmer Brothers Co. employees will use MicroStrategy reports and information dashboards to uncover insight into financials, sales order processing, manufacturing, procurement, inventory, and human resources. MicroStrategy will also be used by Farmer Brothers' personnel across the organization, including the CEO, COO, CFO, Controller, VP Finance, VP Sales, and Sales staff, as well as by manufacturing, financial, HR, and operations users.

Starwood Hotels & Resorts Worldwide, Inc.

Starwood Hotels & Resorts Worldwide, Inc. is one of the world's leading hotel and leisure companies with approximately 991 properties in more than 100 countries and 145,000 employees at its owned and managed properties. Starwood has expanded its deployment of MicroStrategy for business intelligence reporting and analytics. Starwood relies on MicroStrategy to analyze reservation and guest information and uncover patterns and trends. More than 3,000 Starwood personnel use MicroStrategy's highly-visual information dashboards and content-rich reports for valuable insights into its key business areas, including revenue management, reservations, property management, and brand analysis. Starwood also relies on MicroStrategy for market performance analysis, owner relations, operations, strategic account management, and global sales analysis.

MicroStrategy Customers Delivered Impressive Sales Growth during Recession, According to Aberdeen Group Report:

Aberdeen Group published a report citing that MicroStrategy customers indicated strong sales growth between September 2008 and July 2009 as compared to the industry average. According to the report, customers using MicroStrategy software achieved a 6% increase in sales during the time period as compared to an industry average of a 4% decline in sales revenue. Among large BI vendors in the survey, only MicroStrategy customers experienced significant sales growth.

The report also found:

Aberdeen Group's report investigated different strategies and tactics that companies used to manage business performance during the recession. Elaborating on MicroStrategy's customers, the report states, "...not only do they know how and where they spend their marketing budget, but they can gauge the contribution of that expenditure to the success of the organization."

About MicroStrategy Incorporated

Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy provides integrated reporting, analysis, and monitoring software that helps leading organizations worldwide make better business decisions every day. Companies choose MicroStrategy for its ease-of-use, sophisticated analytics, and superior data and user scalability. MicroStrategy offers free reporting software that can be downloaded from its website, http://www.microstrategy.com/freereportingsoftware. More information about MicroStrategy (Nasdaq: MSTR) is available at www.microstrategy.com.

MicroStrategy, MicroStrategy 9, MicroStrategy DashboardApps, MicroStrategy Health Center, MicroStrategy Graphical Architect and MicroStrategy Jump-Start Project 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 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 and its subsidiaries (collectively, the "Company") to differ materially from the forward-looking statements. Factors that could contribute to such differences include: 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, including significant downturns in industries, including the financial services and retail industries, in which we have a significant number of customers; 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.



    Contact:
    MicroStrategy Incorporated
    Investor Relations
    ir@microstrategy.com
    (703) 848-8600


MSTR-F



                           MICROSTRATEGY INCORPORATED
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (in thousands, except per share data)

                                   Three Months Ended    Twelve Months Ended
                                       December 31,           December 31,
                                       ------------           ------------
                                     2009        2008        2009       2008
                                     ----        ----        ----       ----
                              (unaudited) (unaudited) (unaudited)  (audited)
    Revenues
    Product licenses              $29,959     $27,959    $101,856    $95,924
    Product support and
     other services                75,813      67,046     275,932    264,469
                                   ------      ------     -------    -------
      Total revenues              105,772      95,005     377,788    360,393
                                  -------      ------     -------    -------

    Cost of Revenues
    Product licenses                2,084         434       6,607      1,877
    Product support and
     other services                17,382      15,631      59,996     61,529
                                   ------      ------      ------     ------
      Total cost of revenues       19,466      16,065      66,603     63,406
                                   ------      ------      ------     ------

    Gross profit                   86,306      78,940     311,185    296,987
                                   ------      ------     -------    -------

    Operating Expenses
    Sales and marketing            35,096      37,624     128,472    137,683
    Research and development       11,389       6,122      41,796     30,571
    General and
     administrative                13,265      13,878      54,613     60,933
                                   ------      ------      ------     ------
      Total operating
       expenses                    59,750      57,624     224,881    229,187
                                   ------      ------     -------    -------

    Income from continuing
     operations before
     financing and other
     income and income taxes       26,556      21,316      86,304     67,800
                                   ------      ------      ------     ------

    Financing and Other Income
     (Expense)
    Interest income, net              438         185         955      2,266
    Other income (expense), net       167         974      (1,459)       705
                                      ---         ---      ------        ---
      Total financing and
       other income
       (expense)                      605       1,159        (504)     2,971
                                      ---       -----        ----      -----

    Income from continuing
     operations before income
     taxes                         27,161      22,475      85,800     70,771
      Provision for income
       taxes                        6,620       8,638      25,293     29,003
                                    -----       -----      ------     ------
    Income from continuing
     operations                    20,541      13,837      60,507     41,768

    Discontinued operations:
      Gain from sale of
       discontinued operations,
       net of tax provision
       ($0 and $11,190,
       respectively)                    -           -      14,437          -
      Income (loss) from
       discontinued operations,
       net of tax provision
       (benefit) ($0 and $358,
       for the three months ended,
       respectively, and ($54)
       and $534 for the twelve
       months ended,
       respectively)                    -         448        (107)        65
                                      ---         ---        ----         --
    Discontinued operations,
     net of tax                         -         448      14,330         65

                                  -------     -------     -------    -------
    Net Income                    $20,541     $14,285     $74,837    $41,833
                                  -------     -------     -------    -------

    Basic earnings per share (1):
      From continuing
       operations                   $1.72       $1.16       $5.08      $3.51
      From discontinued
       operations                      $-       $0.04       $1.20      $0.01
                                       --       -----       -----      -----
         Basic earnings per
          share                     $1.72       $1.20       $6.28      $3.52
                                    -----       -----       -----      -----
    Weighted average shares
     outstanding used in
     computing basic earnings
     per share                     11,929      11,889      11,906     11,886
                                   ------      ------      ------     ------

    Diluted earnings per share (1):
      From continuing
       operations                   $1.66       $1.13       $4.92      $3.39
      From discontinued
       operations                      $-       $0.04       $1.17      $0.01
                                       --       -----       -----      -----
         Diluted earnings per
          share                     $1.66       $1.17       $6.09      $3.40
                                    -----       -----       -----      -----
    Weighted average shares
     outstanding used in
     computing diluted
     earnings per share            12,350      12,226      12,284     12,303
                                   ------      ------      ------     ------

    (1) Basic and fully diluted earnings per share for class A and class B
        common stock are the same





                            MICROSTRATEGY INCORPORATED
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except per share data)
                                    (unaudited)

                          Core BI
                          Business          Angel.com           Consolidated
                          --------          ---------           ------------
                        Three Months      Three Months          Three Months
                            Ended             Ended                 Ended
                        December  31,     December  31,         December  31,
                        -------------     -------------         -------------
                         2009     2008    2009     2008          2009     2008
                         ----     ----    ----     ----          ----     ----


    Revenues
    Product licenses  $29,959  $27,959      $-       $-       $29,959  $27,959
    Product support
     and other
     services          71,507   64,030       -        -        71,507   64,030
    Angel.com
     services               -        -   4,306    3,016         4,306    3,016
                          ---      ---   -----    -----         -----    -----
      Total revenues  101,466   91,989   4,306    3,016       105,772   95,005
                      -------   ------   -----    -----       -------   ------

    Cost of Revenues
    Product licenses    2,084      434       -        -         2,084      434
    Product support
     and other
     services          15,845   14,729       -        -        15,845   14,729
    Angel.com
     services               -        -   1,537      902         1,537      902
                          ---      ---   -----      ---         -----      ---
      Total cost of
       revenues        17,929   15,163   1,537      902        19,466   16,065
                       ------   ------   -----      ---        ------   ------
    Gross profit       83,537   76,826   2,769    2,114        86,306   78,940
                       ------   ------   -----    -----        ------   ------

    Operating Expenses
    Sales and
     marketing         33,679   35,759   1,417    1,865        35,096   37,624
    Research and
     development       10,460    5,318     929      804        11,389    6,122
    General and
     administrative    12,664   13,811     601       67 (a)    13,265   13,878
                       ------   ------     ---       --        ------   ------
      Total operating
       expenses        56,803   54,888   2,947    2,736        59,750   57,624
                       ------   ------   -----    -----        ------   ------

    Income (loss) from
     continuing
     operations before
     financing and
     other income and
     income taxes      26,734   21,938    (178)    (622)       26,556   21,316
                       ------   ------    ----     ----        ------   ------

    Financing and
     Other Income
    Interest income,
     net                  438      185       -        -           438      185
    Other income, net     164      974       3        -           167      974
                          ---      ---     ---      ---           ---      ---
      Total financing
       and other
       income             602    1,159       3        -           605    1,159
                          ---    -----     ---      ---           ---    -----
    Income (loss)
     from continuing
     operations
     before income
     taxes            $27,336  $23,097   $(175)   $(622)      $27,161  $22,475
      Provision for
       income taxes                                             6,620    8,638
                                                                -----    -----
    Income from
     continuing
     operations                                                20,541   13,837

    Discontinued
     operations:
      Income from
       discontinued
       operations,
       net of tax                                                   -      448
                                                                  ---      ---
    Discontinued
     operations,
     net of tax                                                     -      448

                                                              -------  -------
    Net income                                                $20,541  $14,285
                                                              =======  =======

    Basic earnings
     per share:
        From
         continuing
         operations                                             $1.72    $1.16
        From
         discontinued
         operations                                                $-    $0.04
                                                                   --    -----
            Basic
             earnings
             per share                                          $1.72    $1.20
                                                                -----    -----

    Diluted earnings
     per share:
        From
         continuing
         operations                                             $1.66    $1.13
        From
         discontinued
         operations                                                $-    $0.04
                                                                   --    -----
            Diluted
             earnings
             per share                                          $1.66    $1.17
                                                                -----    -----

         Basic weighted
          average shares
          outstanding                                          11,929   11,889
                                                               ======   ======
         Diluted weighted
          average shares
          outstanding                                          12,350   12,226
                                                               ======   ======

    (a)  An insignificant amount of general and administrative services was
         provided to the Angel.com business unit by MicroStrategy's core
         business operations during the three months ended December 31, 2008.



                             MICROSTRATEGY INCORPORATED
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except per share data)
                                    (unaudited)

                          Core BI
                          Business          Angel.com           Consolidated
                          --------          ---------           ------------
                       Twelve  Months    Twelve  Months        Twelve  Months
                            Ended             Ended                 Ended
                        December  31,     December  31,         December  31,
                        -------------     -------------         -------------
                         2009     2008    2009     2008          2009     2008
                         ----     ----    ----     ----          ----     ----


    Revenues
    Product licenses $101,856  $95,924      $-       $-      $101,856  $95,924
    Product support
     and other
     services         261,956  253,660       -        -       261,956  253,660
    Angel.com
     services               -        -  13,976   10,809        13,976   10,809
                          ---      ---  ------   ------        ------   ------
      Total revenues  363,812  349,584  13,976   10,809       377,788  360,393
                      -------  -------  ------   ------       -------  -------

    Cost of Revenues
    Product licenses    6,607    1,877       -        -         6,607    1,877
    Product support
     and services
     revenues          54,625   59,331       -        -        54,625   59,331
    Angel.com
     services               -        -   5,371    2,198         5,371    2,198
                          ---      ---   -----    -----         -----    -----
      Total cost of
       revenues        61,232   61,208   5,371    2,198        66,603   63,406
                       ------   ------   -----    -----        ------   ------
    Gross profit      302,580  288,376   8,605    8,611       311,185  296,987
                      -------  -------   -----    -----       -------  -------

    Operating Expenses
    Sales and
     marketing        123,690  129,721   4,782    7,962       128,472  137,683
    Research and
     development       38,042   27,546   3,754    3,025        41,796   30,571
    General and
     administrative    52,741   60,651   1,872      282 (a)    54,613   60,933
                       ------   ------   -----      ---        ------   ------
      Total operating
       expenses       214,473  217,918  10,408   11,269       224,881  229,187
                      -------  -------  ------   ------       -------  -------

    Income (loss) from
     continuing
     operations before
     financing and
     other income and
     income taxes      88,107   70,458  (1,803)  (2,658)       86,304   67,800
                       ------   ------  ------   ------        ------   ------

    Financing and Other
     (Expense) Income
    Interest income,
     net                  955    2,266       -        -           955    2,266
    Other (expense)
     income, net       (1,462)     705       3        -        (1,459)     705
                       ------      ---     ---      ---        ------      ---
      Total financing
       and other
       (expense)
       income            (507)   2,971       3        -          (504)   2,971
                         ----    -----     ---      ---          ----    -----
    Income (loss)
     from continuing
     operations
     before income
     taxes            $87,600  $73,429 $(1,800) $(2,658)      $85,800  $70,771
      Provision for
       income taxes                                            25,293   29,003
                                                               ------   ------
    Income from
     continuing
     operations                                                60,507   41,768

    Discontinued
     operations:
      Gain from sale of
       discontinued
       operations,
       net of tax                                              14,437        -
      (Loss) income from
       discontinued
       operations,
       net of tax                                                (107)      65
                                                                 ----       --
    Discontinued
     operations,
     net of tax                                                14,330       65

                                                              -------  -------
    Net income                                                $74,837  $41,833
                                                              =======  =======

    Basic earnings
     per share:
        From
         continuing
         operations                                             $5.08    $3.51
        From
         discontinued
         operations                                             $1.20    $0.01
                                                                -----    -----
            Basic
             earnings
             per share                                          $6.28    $3.52
                                                                -----    -----

    Diluted earnings
     per share:
        From
         continuing
         operations                                             $4.92    $3.39
        From
         discontinued
         operations                                             $1.17    $0.01
                                                                -----    -----
            Diluted
             earnings
             per share                                          $6.09    $3.40
                                                                -----    -----

         Basic weighted
          average shares
          outstanding                                          11,906   11,886
                                                               ======   ======
         Diluted weighted
          average shares
          outstanding                                          12,284   12,303
                                                               ======   ======

    (a)  An insignificant amount of general and administrative services was
         provided to the Angel.com business unit by MicroStrategy's core
         business operations during the twelve months ended December 31, 2008.





                            MICROSTRATEGY INCORPORATED
                           CONSOLIDATED BALANCE SHEETS
                      (in thousands, except per share data)

                                                  December 31,  December 31,
                                                          2009          2008
                                                          ----          ----
    Assets                                          (unaudited)     (audited)
    Current assets
      Cash and cash equivalents                       $224,769      $122,915
      Restricted cash and investments                      549           619
      Accounts receivable, net                          56,399        49,670
      Prepaid expenses and other current assets         10,861         9,518
      Deferred tax assets, net                          12,642        26,743
      Assets held-for-sale                                   -         4,964
                                                         -----         -----
    Total current assets                               305,220       214,429

    Property and equipment, net                         54,906         8,978
    Capitalized software development cost, net          13,431        14,823
    Deposits and other assets                            3,283        36,804
    Deferred tax assets, net                             6,490        17,105
                                                         -----        ------
    Total Assets                                      $383,330      $292,139
                                                      --------      --------

    Liabilities and Stockholders' Equity
    Current liabilities
      Accounts payable and accrued expenses            $28,460       $27,697
      Accrued compensation and employee benefits        46,277        42,634
      Deferred revenue and advance payments             77,783        66,495
      Deferred tax liabilities                             115             -
      Liabilities held-for-sale                              -         6,325
                                                         -----         -----
    Total current liabilities                          152,635       143,151

    Deferred revenue and advance payments                3,845         1,679
    Other long-term liabilities                         12,622         9,268
                                                        ------         -----

    Total Liabilities                                  169,102       154,098
                                                       -------       -------

    Stockholders' Equity
      Preferred stock undesignated,
       $0.001 par value; 5,000 shares authorized;
       no shares issued or outstanding                      -             -
      Class A common stock, $0.001 par value;
       330,000 shares authorized; 14,302 shares
       issued and 9,255 shares outstanding, and
       14,167 shares issued and 9,120 shares
       outstanding, respectively                            14            14
      Class B common stock, $0.001 par value;
       165,000 shares authorized; 2,694 and 2,770
       shares issued and outstanding, respectively           3             3
      Additional paid-in capital                       453,170       450,953
      Treasury stock, at cost; 5,047 shares           (366,191)     (366,191)
      Accumulated other comprehensive income               604         1,471
    Retained earnings                                  126,628        51,791
                                                       -------        ------
    Total Stockholders' Equity                         214,228       138,041
                                                       -------       -------
    Total Liabilities and Stockholders' Equity        $383,330      $292,139
                                                      --------      --------





                           MICROSTRATEGY INCORPORATED
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)

                                                         Twelve Months Ended
                                                            December 31,
                                                            ------------
                                                            2009       2008
                                                            ----       ----
                                                     (unaudited)  (audited)
    Operating activities:
      Net income                                         $74,837    $41,833
      Less:  Income from discontinued operations,
       net                                               (14,330)       (65)
                                                         -------        ---
          Income from continuing operations               60,507     41,768
      Adjustments to reconcile net income to net
       cash provided by operating activities:
        Depreciation and amortization                     10,631      6,399
        Bad debt expense                                   1,863      2,029
        Deferred taxes                                    16,146     20,925
        Stock-based compensation                               -         46
        Excess tax benefits from stock-based
         payment arrangements                               (907)      (422)
        Other, net                                            10         72
      Changes in operating assets and liabilities:
        Accounts receivable                               (9,264)    (3,862)
        Prepaid expenses and other current assets         (1,168)     1,643
        Deposits and other assets                            553        157
        Accounts payable and accrued expenses              1,076      5,102
        Accrued compensation and employee benefits         2,041      5,574
        Deferred revenue and advance payments             12,108      5,278
        Other long-term liabilities                        3,319        190
                                                           -----        ---
          Net cash provided by operating activities
           from continuing operations                     96,915     84,899
          Net cash (used in) provided by operating
           activities from discontinued operations          (472)     4,019
                                                            ----      -----
              Net cash provided by operating
               activities                                 96,443     88,918
                                                          ------     ------
    Investing activities:
      Advance deposits on purchases of property and
       equipment                                               -    (25,000)
      Purchases of property and equipment                (18,265)    (5,167)
      Capitalized software development costs              (4,218)   (13,575)
      Decrease in restricted cash and investments            575      1,100
                                                             ---      -----
          Net cash used in investing activities
           from continuing operations                    (21,908)   (42,642)
          Net cash provided by (used in) investing
           activities from discontinued operations        24,546       (160)
                                                          ------       ----
               Net cash provided by (used in) investing
                activities                                 2,638    (42,802)
                                                           -----    -------
    Financing activities:
      Proceeds from sale of class A common stock
       under exercise of employee stock options            1,216      2,104
      Excess tax benefits from stock-based payment
       arrangements                                          907        422
      Purchases of treasury stock                              -     (8,387)
      Distribution to Alarm.com minority
       shareholders                                          (60)         -
                                                             ---        ---
          Net cash provided by (used in) financing
           activities from continuing operations           2,063     (5,861)
          Net cash provided by financing activities
           from discontinued operations                        -          -
                                                             ---        ---
              Net cash provided by (used in)
               financing activities                        2,063     (5,861)
          Effect of foreign exchange rate changes
           on cash and cash equivalents                      710     (2,534)
                                                             ---     ------
    Net increase in cash and cash equivalents            101,854     37,721
    Cash and cash equivalents, beginning of period       122,915     85,194
                                                         -------     ------
    Cash and cash equivalents, end of period            $224,769   $122,915
                                                        ========   ========





SOURCE MicroStrategy Incorporated

Copyright (C) 2010 PR Newswire. All rights reserved