Salesforce (CRM) Shares Slip 6% on Modest Guidance

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Salesforce (CRM) Shares Slip 6% on Modest Guidance Powered By Docstoc
					Robert DeFrancesco’s
TechStockProspector.com
May 23, 2013

Salesforce (CRM) Shares Fall 6% on Modest Guidance

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*Cloud software shines in Q1 earnings season
*NetSuite shows why it’s a cloud leader
*ServiceNow expanding its addressable market
*Proofpoint raises guidance on key security wins
*SPS Commerce builds its customer base
*Sourcefire raging in networking security
*Adobe Systems gets traction in the cloud
*A valuation reset for Citrix Systems
*Yahoo focuses on content & mobile
*Fusion-IO diversifies its customer portfolio
*LinkedIn disrupts enterprise recruiting
*New growth drivers at Microsoft
*Apple readies its next product cycle
*Akamai sees growth in cloud infrastructure
*Riverbed Technology tries to find footing
*A new capital allocation strategy at Harmonic
*Deal Report: Marketo IPO overview

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Shares of Salesforce.com (CRM, $42.70 after hours) are down 6.5% in after-hours
trading following somewhat light revenue guidance for fiscal Q2 (July).

For the April quarter, Salesforce reported EPS of 10 cents, in line with the consensus
estimate, on revenue of $893 million (+28% y/y), above the consensus of $887.1
million. Subscription and support revenue was up 29% to $842 million.
Deferred revenue advanced 30% year over year to $1.73 billion, but fell 6.9%
sequentially. Unbilled deferred revenue (contracted but not yet billed) was up 33%
year over year and 2.8% sequentially to $3.6 billion.

For fiscal Q2, the company sees EPS of 11 cents to 12 cents (the consensus is 12
cents) on revenue of $931 million to $936 million (the consensus is $934.5 million).

For fiscal 2014 (Jan.), Salesforce looks for revenue of $3.835 billion to $3.875 billion
(+26.5% at the midpoint), vs. the consensus of $3.87 billion.

Salesforce is a pricey stock, so results always need to be spot-on. On a technical
basis, downside levels to watch: the 50-day moving average at $42.96 and the 200-
day moving average at $40.59.

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Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
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Description: Salesforce.com reported fiscal Q1 revenue growth of 28%. Revenue guidance for fiscal Q2 indicates growth of 27.5% at the midpoint.