UPDATE: Salesforce.com 1Q Profit Doubles, Cuts 2010 Views
21 Mayo 2009 - 5:19PM
Noticias Dow Jones
Salesforce.com Inc.'s (CRM) first-quarter profit nearly doubled
on improved margins, but the company cut its fiscal-year 2010
revenue guidance, saying its new business signings for the quarter
were lower than expected.
Shares, which have nearly doubled since November but remain down
by more than a third for the past 12 months, were sold off in the
after-market. At 5.43 p.m. Eastern they were trading down 7.4% at
$36.70, after closing at $39.65.
Analysts have been concerned in recent months that the San
Francisco-based company, which makes online business software,
could face lower renewal rates and declining demand due to layoffs
and economic weakness.
On a conference call with analysts, Salesforce.com Chief
Financial Officer Graham Smith said that the weaker full year
revenue view reflected the fact that first quarter signings were
weaker than expected. The company is also seeing increasing
fluctuation in its seasonal invoicing patterns, longer sales cycles
and smaller initial deal deployments.
Smith said that better than expected earnings per share
reflected tighter cost control during the first quarter.
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 and Jessica Hodgson, Dow Jones Newswires;
201-938-2168; shara.tibken@dowjones.com;