MicroStrategy Down 5% After Earnings Miss

MicroStrategy

shares are down 5% today after the company missed earnings estimates. Fourth quarter 2011 revenues were $160.3 million, the highest quarterly total revenues in company history, versus $139.1 million for the fourth quarter of 2010, a 15% increase. 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% increase. Product support and other services revenues for MicroStrategy's core business intelligence (BI) business for the fourth quarter of 2011 were $99.5 million versus $85.8 million for the fourth quarter of 2010, a 16% increase. Operating expenses for the fourth quarter of 2011 were $113.7 million versus $87.4 million for the fourth quarter of 2010, a 30% increase. The increase in operating expenses was primarily due to increased headcount and related expenses, particularly for engineering and sales personnel. Net income for the fourth quarter of 2011 was $9.0 million, or $0.81 per share on a diluted basis, compared to $17.9 million, or $1.60 per share on a diluted basis, for the fourth quarter of 2010.