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Large Contracts Boost MicroStrategy's 3Q Sales

The company also reported a huge gain in net income, much of it from a onetime tax benefit.

Closing a number of deals worth more than $1 million, MicroStrategy Inc. reported Tuesday that sales and license revenue surged in its third quarter, ended Sept. 30. The business-intelligence software vendor also reported a huge gain in net income, much of it from a onetime tax benefit.

MicroStrategy reported sales of $60.6 million for the quarter, up 42% from the same period a year earlier. License revenue spiked 46% over last year, to $25.8 million, "primarily due to closing multiple transactions with license revenues in excess of a million dollars," the company says.

MicroStrategy didn't identify the specific customers but said deals during the quarter were struck with Cingular Wireless, media and entertainment company Discovery Communications, the FBI, and health-care IT services firm Premier.

Net income for the quarter was $122 million, or $7.22 per share, compared with a $24.4 million loss last year. The results included a noncash income-tax benefit of $103.6 million. Income from operations during the quarter was $18.8 million--31% of revenue--compared with $7 million, or 16% of revenue, last year.

MicroStrategy expects fourth-quarter revenue of $47.7 million to $57.4 million and net income of $6.7 million to $13.6 million. The company projects fiscal 2004 sales of $211.1 million to $251.6 million and net income of $32.4 million to $48.1 million.

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