2005 Post 200
MicroStrategy Inc.
1861 International Dr.
McLean, Va. 22102
www.microstrategy.com
Industry: Information technology
Post 200 Category: Top 125 Companies
Revenue: $231.21 Million
Net Income/Loss: $168.31 Million
Earnings per share: $9.83
Dividend: n/a
Stockholder equity: $240.58 Million
Auditor: n/a
Stock: MSTR
Assets: $336.96 Million
Market capitalization: $891.09 Million
52-week high: 79.75 1/28/2005
52-week low: 29.57 8/17/2004
Chairman and CEO: Michael J. Saylor
COO and EVP: Sanju K. Bansal
Employees: 945
Local employees: 479
Description: MicroStrategy markets software that helps businesses analyze data and identify trends. The company, which is controlled by founder, chairman and chief executive Michael J. Saylor, has bounced back from an accounting scandal that nearly destroyed it five years ago. Without admitting or denying wrongdoing, Saylor and two other top executives each paid fines of $350,000 in 2000 to settle charges by the Securities and Exchange Commission that they committed civil accounting fraud.
Developments: In December, Eric F. Brown resigned as president and chief financial officer to become chief financial officer of McAfee Inc., maker of computer security software. Brown had assumed those leadership roles at MicroStrategy as the company was struggling to overcome revelations that it inflated years of revenue and claimed profits when it was actually losing money. Brown helped guide the company back to profitability. With his departure, Saylor reclaimed the title of president. MicroStrategy named vice president of finance Arthur S. Locke III to succeed Brown as chief financial officer. In August, MicroStrategy won a partial victory in litigation with rival Business Objects S.A. A federal court rejected MicroStrategy's claim that Business Objects had infringed upon a MicroStrategy patent. But the court found that Business Objects had misappropriated MicroStrategy trade secrets. MicroStrategy appealed. In February of this year, MicroStrategy agreed to provide free office space to Alcantara LLC, which Saylor, Alcantara's sole member, uses as a holding company for MicroStrategy stock. Saylor recused himself from the board vote approving the arrangement, the company reported. And in March, PricewaterhouseCoopers LLP, the firm that stuck with MicroStrategy through the depths of its accounting scandal, quit as the company's auditor. Neither MicroStrategy nor PwC said why. A filing with the SEC indicated only that the accounting firm did not have any disagreements with the company on accounting practices or financial statements from 2002 through March 9.