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MicroStrategy, Inc. (Nasdaq: MSTR) tumbled US$3.25 to $13.69 Wednesday morning after the software maker reported fourth-quarter results and issued a forecast for the coming year that was reportedly below expectations.
In addition, the company's chief executive officer and vice chairman said they intend to sell some of their MicroStrategy shares.
For the fourth quarter ended December 31st, MicroStrategy reported a loss before charges of $24.9 million, or 31 cents per share, compared with a loss of $14.0 million, or 18 cents, in the same period a year earlier. Revenue rose to $58.1 million from $46.2 million.
The company said it expects 2001 revenue to rise by about 30 percent. The forecast depends on "market acceptance of the company's technology" and assumes a 30 percent growth rate for the overall business intelligence software market, MicroStrategy said.
Reports said analysts had predicted 40 to 50 percent growth for the company.
Chief executive officer Michael Saylor said the company is "well positioned to continue exerting a leadership role in the business intelligence market."
Also Wednesday, the company said Saylor and vice chairman and chief operating officer Sanju Bansal plan to sell some of their MicroStrategy shares. Saylor said he will sell 15,000 Class A common shares each day over the next two years.
"This pre-determined plan will allow me to fund my previously announced charitable commitment to creating a cyber-university and to diversify approximately 2 percent of the shares held by me per quarter," Saylor said. "I remain strongly confident in the future prospects of MicroStrategy, as evidenced by the fact that I plan to be holding nearly 40 million shares a year from now."
Bansal will sell up to $18 million of Class A common stock during the first quarter, and up to 5,000 shares per day for the rest of the year.
"MicroStrategy shares constitute the vast majority of my net worth," Bansal said. "I believe it is prudent to diversify my investment portfolio."
MicroStrategy made headlines last year when it restated financial results as
part of a Securities and Exchange Commission settlement.
