This excerpt taken from the MSTR 10-Q filed Aug 9, 2005.
Net cash used in financing activities was $124.6 million for the first six months of 2005, as compared to net cash provided by financing activities of $2.4 million for the six months ended June 30, 2004. The change was attributable to the repurchase of 2,509,952 shares of class A common stock at a cost of $127.6 million under our 2004 Share Repurchase Program during the second quarter of 2005.
This excerpt taken from the MSTR 10-Q filed May 10, 2005.
Net cash provided by financing activities was $2.4 million and $1.9 million for the three months ended March 31, 2005 and 2004, respectively. The change was attributable to an increase in proceeds from the sale of our class A common stock under our employee stock purchase plan and the exercise of employee stock options.
This excerpt taken from the MSTR 10-K filed Mar 16, 2005.
Net cash provided by financing activities was $3.4 million in 2004, as compared to net cash used in financing activities of $1.0 million and $11.6 million in 2003 and 2002, respectively. The change from 2003 to 2004 was primarily attributable to an increase in proceeds from the sale of class A common stock under our employee stock purchase plan and the exercise of employee stock options, offset by our repurchase of shares of class A common stock during 2004. The change from 2002 to 2003 was primarily due to net cash payments of $10.0 million in connection with the refinancing of our series B, C and D preferred stock during the 2002 period. The change was also attributable to an increase in proceeds from the sale of our class A common stock under our employee stock purchase plan and the exercise of employee stock options.
In connection with the refinancing of our series B, C and D preferred stock in August 2002, we issued to preferred stockholders, among other consideration, $5.0 million in promissory notes with a carrying value of $4.5 million at the time of issuance. The promissory notes accrued interest at a rate of 7.5% per annum, payable semi-annually, and matured on July 31, 2003. Upon maturity of the promissory notes on July 31, 2003, we paid $5.2 million to repay in full the principal and interest due under the promissory notes issued to former preferred stockholders.
During 2002, we repurchased $17.0 million principal amount of our Series A Notes. During the first and second quarters of 2003, we repurchased an additional $10.3 million principal amount of these notes. On July 30, 2003, we completed the conversion of the remaining $53.0 million in principal amount outstanding of our Series A Notes plus accrued and unpaid interest and issued 1,654,839 shares of class A common stock in such conversion. As a result of this transaction, we eliminated our remaining principal and interest obligations relating to our Series A Notes.
During the second quarter of 2004, we entered into an enterprise agreement with a software vendor for software and support services to be provided to us over a three-year period beginning June 1, 2004 and ending May 31, 2007. Upon execution of the agreement, we recorded a short- and long-term liability of $890,000 and $1.8 million, respectively, along with short- and long-term assets totaling $836,000 and $1.9 million respectively. Our payments under this agreement are due in three annual installments of approximately $978,000, and commenced in July 2004. As of December 31, 2004, obligations under this agreement of $882,000 and $914,000 are classified in the accompanying consolidated balance sheet in accounts payable and accrued expenses and other long-term liabilities, respectively. Interest associated with this financing arrangement has been imputed at our current estimated borrowing rate of 3.1%. During 2004, we incurred interest expense of $40,000 related to this agreement.
Management believes that existing cash, cash equivalents, short- and long-term investments and cash anticipated to be generated internally by operations will be sufficient to meet working capital requirements and anticipated capital expenditures for at least the next twelve months. Based upon our current liquidity position, we do not currently expect to borrow money to finance our operations for the foreseeable future.