|
Press Release |
|||
|
MicroStrategy Announces Resolution of SEC InquiryVIENNA, Va., Dec. 14 -- MicroStrategy® Incorporated (Nasdaq: MSTR - news), a leading worldwide provider of business intelligence software, today announced it has completely resolved the Securities and Exchange Commission's inquiry into the Company's March 2000 financial restatement. MicroStrategy concluded the SEC matter without admitting or denying wrongdoing, and the SEC did not assess a monetary penalty against the Company. The Company cooperated fully with the SEC in its inquiry.``I am pleased that this agreement fully concludes the Commission's inquiry,'' said MicroStrategy Chairman and CEO Michael Saylor. ``Given our desire to put the restatement behind us and move forward in our business, this is a welcome outcome. By removing the diversions and uncertainties associated with this inquiry, senior management will be able to focus all of its time and attention on the exciting opportunities in the business intelligence market. We have worked hard to put in place numerous organizational and business measures to safeguard the integrity of our finances, and now we can turn with renewed energy and dedication to the marketplace.'' The Company consented to the entry of a remedial administrative order that includes a commitment to rigorous contracting and accounting procedures. As previously announced, the Company will also add a new, independent director with finance expertise to the audit committee of its Board of Directors. MicroStrategy's Chief Executive Officer Michael Saylor, Chief Operating Officer Sanju Bansal, and former Chief Financial Officer Mark Lynch simultaneously entered into consent decrees with the SEC in connection with various matters relating to the restatement. As part of their agreements with the SEC, each individual agreed to pay a $350,000 fine. In addition, these individuals will make a previously announced contribution of MicroStrategy common stock to the Company's resolution of related securities class action and shareholder derivative lawsuits. Each of these individuals neither admitted nor denied the allegations contained in the SEC's complaint. Today's agreement, taken together with the previously announced agreements to settle the outstanding class action and shareholder derivative lawsuits (which are subject to court approval and other conditions), will resolve all pending legal and regulatory matters relating to the Company's March 2000 financial restatement. About MicroStrategy MicroStrategy is a leading worldwide provider of business intelligence software and related services. MicroStrategy's technology platform enables companies to build solutions that provide powerful insight into business operations and create lasting, profitable relationships with partners, supply- chains, and customers. MicroStrategy delivers these solutions via web, wireless, and voice. MicroStrategy also offers a comprehensive set of consulting, training and support services for its customers and partners. MicroStrategy has approximately 1,000 customers across such diverse industries as retail, finance, telecommunications, dot-com, insurance, healthcare, pharmaceuticals and consumer packaged goods. MicroStrategy also has entered into relationships with approximately 300 systems integrators, application development and platform partners. For more information, or to purchase or demo MicroStrategy's software, please visit MicroStrategy's Web site at http://www.microstrategy.com . This press release may include statements that may constitute ``forward- looking statements,'' including its 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 possibility that the securities class action and shareholder derivative settlement agreements will not obtain court approval or that the other conditions to the settlements will not be satisfied; the Company's ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7 software and Strategy.com network on a timely basis; adverse reaction by the Company's employees, investors, customers, vendors and lenders to the restatement of the Company's financial results or its future prospects; 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; 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.
Editorial Contact: Gabrielle Stone Collaborative Communications Inc. 617-520-9164 gstone@collaborative.com top of page |
|||