MicroStrategy swings to profit

By SiliconIndia   |   Friday, 31 January 2003, 08:00 Hrs
Printer Print Email Email
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.

SPOTLIGHT
Wipro opens third industrial
IT major Wipro Ltd on Thursday opened its centre of excellence for Industrial Internet of Things (..
Facebook denies cyber attack
Facebook ruled out a cyber attack on its products Whatsapp, Instagram and Messenger, which suf..
IBM announces programme
n a bid to recognise the contribution of developers in the open source community, Information ..
Google's Gboard gets offline
Google is adding an Artificially Intelligent (AI) offline dictation feature on its Gboard keyb..