Still feeling the repercussions from its accounting woes earlier this year, MicroStrategy Inc. today reported a whopping $71.8 million loss for its second quarter, which ended June 30, including a $43.1 million operating loss. Sales for the quarter rose more than 24% to $50.3 million, from $40.5 million in the same period last year.
President and CEO Michael Saylor said in a statement that sales growth slowed during the quarter "due to uncertainty created with customers by the publicity associated with our accounting problems." In March, the business-intelligence software vendor said it had to restate sales and earnings for 1997, 1998, and 1999--resulting in a loss for all three years, including a $33.7 million loss last year--because of errors in the way it accounted for revenue from long-term contracts.
Saylor said his goal is to make the once high-flying MicroStrategy profitable by the end of 2001. He also said the company is taking steps to reduce expenses, including instituting financial controls and "reducing the growth rate of head count." In May, Saylor pledged some of his own financial assets to guarantee a line of credit for MicroStrategy.
In addition to its operating loss, MicroStrategy took a number of charges--totaling $28.7 million--during the quarter for intangible assets amortization, loss on sale of securities, and expenses related to a $125 million private placement. For the six months ended June 30, the company's net losses, including charges, was $104.7 million. MicroStrategy's stock, which traded as high as $313 per share in March, closed today at $30.