MicroStrategy Incorporated (MSTR) has reported an 11.45 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $26.63 million, or $2.31 a share in the quarter, compared with $23.89 million, or $2.06 a share for the same period last year.
Revenue during the quarter went up marginally by 0.28 percent to $129.90 million from $129.54 million in the previous year period. Gross margin for the quarter expanded 140 basis points over the previous year period to 82.34 percent. Total expenses were 76.90 percent of quarterly revenues, up from 76.28 percent for the same period last year. That has resulted in a contraction of 62 basis points in operating margin to 23.10 percent.
Operating income for the quarter was $30.01 million, compared with $30.73 million in the previous year period.
However, the adjusted operating income for the quarter stood at $33.37 million compared to $35.36 million in the prior year period. At the same time, adjusted operating margin contracted 161 basis points in the quarter to 25.69 percent from 27.30 percent in the last year period.
"Excellence in BI doesn’t start and end with selecting an enterprise software platform it takes ongoing training and education to build an empowered user community capable of great things," said Michael J. Saylor, CEO, MicroStrategy Incorporated. "We recognize that standing up an enterprise analytics platform is a long-term investment. We are excited about the Jump Start program and look forward to training customers, partners and prospective customers interested in using our newest and most innovative analytics technology to transform their data."
Operating cash flow declines
MicroStrategy Incorporated has generated cash of $94.04 million from operating activities during the nine month period, down 23.82 percent or $29.41 million, when compared with the last year period.
The company has spent $20.90 million cash to meet investing activities during the nine month period as against cash outgo of $40.87 million in the last year period.
The company has spent $1.54 million cash to carry out financing activities during the nine month period as against cash inflow of $4.97 million in the last year period.
Cash and cash equivalents stood at $365.56 million as on Sep. 30, 2016, up 58.81 percent or $135.37 million from $230.19 million on Sep. 30, 2015.
Working capital increases sharply
MicroStrategy Incorporated has recorded an increase in the working capital over the last year. It stood at $466.01 million as at Sep. 30, 2016, up 31.02 percent or $110.33 million from $355.68 million on Sep. 30, 2015. Current ratio was at 3.54 as on Sep. 30, 2016, up from 2.96 on Sep. 30, 2015.
Days sales outstanding were almost stable at 40 days for the quarter, when compared with the last year period.
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