by Christopher Freeburn | August 24, 2012 11:38 am
Salesforce.com (NYSE:CRM) announced on Thursday a second-quarter loss of $9.9 million, twice the size of the $4.3 million loss it reported in the same period last year. Revenue increased to $731.6 million, up 34% from last year, and topping analysts who expected $728 million, Reuters noted.
Adjusted EPS, which excluded executive compensation charges of $85 million, was 42 cents for the quarter. That beat Wall Street’s estimate of 39 cents a share.
Salesforce said it anticipates earnings for the third quarter of between 31 cents and 32 cents a share. Analysts were expecting earnings of 34 cents a share in the current quarter.
CRM shares rose about 1% in Friday morning trading.
Company officials boosted their outlook for the year, projecting earnings for fiscal 2013 of between $1.48 and $1.51 a share.
Salesforce is facing a price war with SAP (NYSE:SAP) and Oracle (NASDAQ:ORCL), which may reduce profits. Earlier this year, it agreed to purchase social advertising company Buddy Media for $689 million. Company officials have brushed off criticism over the purchase, saying the acquisition of social media assets is necessary in the current highly competitive environment.
Source URL: http://investorplace.com/2012/08/salesforce-com-loss-widens-q3-forecast-fall-short/
Short URL: http://invstplc.com/1nzAspe
Copyright ©2014 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.