Microstrategy Issues Warning, Cuts Jobs

MicroStrategy (MSTR Quote) said Tuesday its first-quarter revenue and earnings will fall short of forecasts and that it will cut one third of its work force.

The business intelligence software provider said it expects a loss per share of 31 cents to 37 cents on revenue of $47 million and $51 million. Eight analysts surveyed by Thomson Financial/First Call were expecting a loss of 30 cents a share. In the year-ago quarter, MicroStrategy lost 45 cents a share.

Executives said a restructuring plan would eliminate 600 employees as the company tries to reach profitability by the end of 2001. MicroStrategy currently employs 1,800 people. The company said the job cuts would come across the board and occur by the end of the second quarter.

In 2000, MicroStrategy, which is based in Vienna, Va., reported revenue of $223.9 million. Revenue for all of 2001 is pegged at $170 million to $180 million, down considerably from a February forecast of a 30% rise in revenue above what was posted in 2000.

Shares of Microstrategy fell 44 cents, or 17%, to $2.13 in recent Nasdaq trading.