Salesforce Com Inc (CRM) swung to a net loss for the quarter ended Apr. 30, 2017. The company has made a net loss of $9.21 million, or $ 0.01 a share in the quarter, against a net profit of $38.76 million, or $0.06 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $202.78 million, or $0.28 a share compared with $167.53 million or $0.24 a share, a year ago. Revenue during the quarter grew 24.57 percent to $2,387.58 million from $1,916.60 million in the previous year period. Gross margin for the quarter contracted 132 basis points over the previous year period to 72.75 percent. Operating margin for the quarter stood at negative 0.37 percent as compared to a positive 2.71 percent for the previous year period.
Operating loss for the quarter was $8.88 million, compared with an operating income of $51.99 million in the previous year period.
However, the adjusted operating income for the quarter stood at $316.92 million compared to $278.51 million in the prior year period. At the same time, adjusted operating margin contracted 126 basis points in the quarter to 13.27 percent from 14.53 percent in the last year period.
“With our outstanding first quarter results, we are thrilled to be raising our fiscal 2018 revenue guidance by $100 million and raising our GAAP and non-GAAP earnings per share expectations for the year,” said Marc Benioff, chairman and chief executive officer, Salesforce. “Salesforce has once again been named the CRM market leader, and we continue to grow our share in CRM -- the fastest growing enterprise software market.”
For the second-quarter, Salesforce Com forecasts revenue to be in the range of $2,510 million to $2,520 million. Salesforce Com forecasts revenue to be in the range of $10,250 million to $10,300 million for fiscal year 2018. For fiscal year 2018, the company expects diluted earnings per share to be in the range of $0.06 to $0.08. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.31 to $0.32 for the second-quarter. For fiscal year 2018, the company expects diluted earnings per share to be in the range of $1.28 to $1.30 on adjusted basis.
Operating cash flow improves
Salesforce Com has generated cash of $1,229.58 million from operating activities during the quarter, up 16.98 percent or $178.52 million, when compared with the last year period. The company has spent $767.72 million cash to meet investing activities during the quarter as against cash outgo of $450.28 million in the last year period.
The company has spent $49.64 million cash to carry out financing activities during the quarter as against cash inflow of $39.17 million in the last year period.
Cash and cash equivalents stood at $2,024.90 million as on Apr. 30, 2017, up 12.55 percent or $225.82 million from $1,799.08 million on Apr. 30, 2016.
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