Filed under: Major movement, Earnings reports, Deals, Dell (DELL), Citigroup Inc. (C), salesforce.com inc (CRM)
By all accounts, Salesforce.com (NYSE: CRM) is on its way to being a legendary software company. Based on the latest quarterly results, announced Wednesday after the close, the revenues are on track to reach $1 billion.
The company also continues to grow at a blistering rate. In Q2, revenues surged 49% to $263.1 million. Net income came to $10 million, or $0.08 per share. Actually, for the past 12 months, Salesforce.com generated about $270 million in operating cash flow. In all, there’s $823 million in the bank.
Q2 saw the addition of roughly 4,100 new customers for a total of 47,700. What’s more, Salesforce.com continues to get traction with its existing major customers, such as Dell (NASDAQ: DELL), Citi (NYSE: C) and Canon. It certainly helps that the company has a highly customizable platform (known as force.com).
Something else: Salesforce.com announced the acquisition of InStranet, which develops knowledge-based management systems for call centers. There has been much demand for such offerings, so why not buy a leading company in the space? Salesforce.com considers the market chance to be about $3 billion.
The issue? Well, the deal will mean a 5 cents charge per share for the full-year.
That’s not appetizing to Wall Street. So far in today’s trading, Salesforce.com’s shares are down 15% to $55.31.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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