MicroStrategy jumps on IBM deal

MicroStrategy shares jumped 7 3/4, or 37 percent, to 28 3/4 Monday after announcing that it had expanded its sales and marketing alliance with IBM.

IBM (NYSE: IBM) shares were up 1 5/16 to 121 3/4.

Company officials said IBM will assemble a team to focus on the sale, integration and implementation of MicroStrategy's software to its clients. Financial terms of the deal were not immediately available.

"IBM and MicroStrategy have been a strong team for years and we are excited to announce our expanded offerings together," said CFO Sanju Bansal in a prepared release.

In its latest quarter, MicroStrategy missed analysts' estimates, posting a loss of $43.1 million, or 54 cents a share, on sales of $50.3 million.

Its shares went into a tailspin after it restated its previous earnings reports, issued a profit warning and postponed a secondary offering.

First Call Corp. consensus expects it to lose 54 cents a share in its third quarter and $2.07 a share in the fiscal year.

The stock surged as high as 333 in March after falling to a low of 15 1/2 last August.

Seven of the 11 analysts following the stock rate it either a "buy" or "strong buy."