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;