MicroStrategy swings to profit
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MicroStrategy swings to profit

By SiliconIndia   |   Friday, 31 January 2003, 08:00 Hrs
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MCLEAN: MicroStrategy Inc.(Nasdaq:MSTRD - News) Thursday announced that it has posted a fourth-quarter profit from the year-earlier loss, driven by higher key software sales and a 27 percent expense reduction exercise.

The company, which did a 1-for-10 reverse stock split last year, saw its shares rise 8 percent to $17.50 in after-hours trade on Instinet following the results.

The McLean, Virginia-based maker of software that scours business data for valuable trends, said its net income was $4.6 million, or 33 cents per diluted share. The result included restructuring, impairment and amortization charges of $2.9 million and a $2 million gain from the early, partial repayment of debt.

A year earlier, MicroStrategy had a fourth-quarter net loss of $24 million, or $2.61 per share.

Revenues fell to $42 million from $43.7 million last year, as a decline in services revenues more than offset a 9 percent increase in software license sales.

Looking ahead, the company forecast first-quarter revenue of $33 million to $37 million. It said its per-share results could be between a loss of 2 cents and a profit of 4 cents.

The company in March 2000 was forced to restate three years of profits as losses. Its stock plunged 62 percent in one day from its all-time high of $333.

MicroStrategy eventually paid $11 million to settle restatement-related charges with the U.S. Securities and Exchange Commission. It also handed over $10 million in stock to shareholders to settle a private lawsuit.

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