Salesforce.com Inc. (CRM), the on-demand software company, saw "somewhat stabilizing demand" in the business environment in its second quarter, the company's Chief Financial Officer Graham Smith said on a conference call Thursday.

However, the San Francisco-based company is still seeing a cautious approach to technology investment on the part of its customers, Smith said.

He said sales cycles were still taking longer to complete than usual, and customers were making smaller initial investments than was typical.

-By Jessica Hodgson; Dow Jones Newswires; 415-439-6455; jessica.hodgson@dowjones.com