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Tickers in this Article: CRM
Salesforce.com inc (NYSE:CRM) announced its results for the most recent quarter on August 23, 2012. Salesforce.com is a cloud computing company, which provides customer relationship management (CRM) products to businesses. It offers a technology platform for Internet-based computing, storage, and connectivity solutions for customers and developers.

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The Numbers: Salesforce.com inc's revenues topped expectations, though the company's EPS fell short of predictions. Salesforce.com inc has averaged revenue growth of 37% over the past five quarters. Salesforce.com inc reported a net loss of $9.8 million during the second quarter.

Management Quote: "Our second quarter revenue growth was outstanding at 34% in dollars and 37% in constant currency," said Marc Benioff, Chairman and CEO, salesforce.com. "Salesforce.com's social enterprise strategy is enabling companies to connect with customers, partners, and employees in completely new ways - and it's creating new opportunities for their growth and ours."

A Look Back: The company's cost of sales rose 34.3% from a year earlier. Last quarter, cost of sales was 22.2% of revenue, similar to the prior-year quarter.

Looking Ahead: Over the past 90 days, the average estimate for the third quarter has fallen from 9 cents per share to one cent, indicating that analysts are growing pessisimistic about the company's performance next quarter. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved down from 41 cents a share to 10 cents over the last 90 days.

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