MicroStrategy's postal win marks increased gvmt presence

MicroStrategy Inc., McLean, Va., has won a contract worth $5 million to provide business intelligence software and support to the Postal Service, the company announced this week.

The deal marks the company's increased emphasis on the government sector, said Sanju Bansal, chief operating officer for MicroStrategy.

"I think you will see an increasing presence [by MicroStrategy] in the government market as the government adopts commercial best practices," Bansal said.

Bansal said the company has been pursuing the government market?federal and state and local?for about six years. At present, all public sector sales account for about 10 percent of the company's sales. In 2002, it reported $147.8 million in revenue, with $38.1 million in profit.

The company's stock was up 10 percent Tuesday, a day after the contract was announced.

Government customers include the Army, the Census Bureau, the Education Department, the Federal Highway Administration, the Housing and Urban Development Department, the Internal Revenue Service, the Navy and others.

"Any organization that has lots of data" would benefit from MicroStrategy's solutions, said Bansal, citing that organizations can become 10 percent to 30 percent more efficient by simply getting a more complete picture of the data within its organizations.

The Postal Service will use MicroStrategy's Business Intelligence Platform software to cull and analyze data on its retail sales, which includes not only stamps but also deliveries and packaging supplies sold at 38,000 outlets. For instance, if overnight deliveries decline in the southwestern states, the Postal Service can react quickly by redirecting more of its marketing efforts in that region, Bansal said.

MicroStrategy's product will also help the Postal Service analyze its financial, network operations, transportation logistics and supply-chain management databases. In addition to the software sale, the post office also has options to procure consulting services, education, and software support services over the next five years.

Founded in 1989, MicroStrategy sells business intelligence software. The company employs about 800 people.