DOW JONES NEWSWIRES
Salesforce.com Inc.'s (CRM) first-quarter profit nearly doubled
on subscription and support-revenue growth and improved margins at
the online business applications company.
But shares dropped 6.7% to $37 in after-hours trading as the
company again lowered its fiscal-year revenue guidance. Shares have
nearly doubled since November but remain down over a third for the
past 12 months amid fears that the challenging tech environment
would prompt customers to curb spending on Salesforce.com's
business tools.
Analysts have been concerned in recent months that the
fast-growing company could face lower renewal rates and declining
demand due to layoffs and economic weakness. But the company's
results in recent quarters have helped alleviate those fears.
Salesforce.com now sees fiscal-year revenue of $1.25 billion to
$1.27 billion, down from February's lowered forecast of $1.3
billion to $1.33 billion. But the company raised its earnings view
by 5 cents to 59 cents to 60 cents a share.
It also projected second-quarter earnings of 14 cents to 15
cents on revenue of $312 million to $313 million. Analysts surveyed
by Thomson Reuters, on average, estimated 13 cents and $319
million, respectively.
For the period ended April 30, Salesforce.com reported earnings
of $18.4 million, or 15 cents a share, up from $9.6 million, or 8
cents a share, a year earlier. Revenue grew 23% to $304.9
million.
In February, the company projected earnings of 10 cents to 11
cents a share on revenue of $304 million to $305 million.
Gross margin edged up to 79.7% from 79.3%. The company's paying
customer base grew 7% to 59,300.
-By Shara Tibken, Dow Jones Newswires; 201-938-2168;
shara.tibken@dowjones.com;