Salesforce Beats, But Acquisition Cuts Forecast

Online software vendor Salesforce.com (CRM) this evening reported a 49% jump in sales, year over year, for its 2Q ended July 31, to $263 million, exceeding a consensus expectation of $260 million, and GAAP profit of 8 cents, in line with estimates. For Q3, the company sees revenue of $273 million, in line with estimates, and profit slightly below estimates, in a range of 6 cents to 7 cents per share, below the average 9-cent estimate.

However, included in that forecast is $2 million in amortization of intangibles, some of that from today’s announced acquisition of Instranet. The company also says it will take on $20 million in stock-based compensation for Q3, of which one presumes some part is a result of the Instranet deal. Salesforce said it expects 5 cents in dilution as a result of the acquisition, for the full year, and said its fully diluted profit including that expense will be 29 cents to 30 cents. Excluding the cost, the company sees raised its outlook by a penny to 34 cents to 35 cents. It also raised its sales forecast, to a range of $1.07 to $1.075 billion. Analysts expect $1.07 billion.

Cash and marketable securities rose 66% to $823 million, the company said. Customer additions, after allowing for churn, rose by 4,100 in the quarter, which the company said was a record number of additions, for a total of 47,700 customers. Deferred revenue rose quarter over quarter by 2%, to $480 million.

Salesforce shares fell 39 cents, or .6%, to $65.09 in after-hours trading. The shares fell .3% during the regular session.

Comments

[discov:]

I am so short CRM now! wohoo, I have been waiting for a crack in this overvalued company. They are a good company, but way way overvalued.

my trade specifics here concisetrading.blogspo.../

2008 Aug 21 10:59 AM