Salesforce.com doubles Q2 profit

Salesforce.com has reported a net income of $21.2m for the second quarter 2010, compared to $10m in the year-ago quarter. Revenue increased 20% to $316.1m.

Operating income increased 83% to $29.5m, while diluted EPS was $0.17 compared to $0.08 in the same period last year. Cash generated from operations declined 14% to $46m.

The company said subscription and support revenue increased 22% to $293.4m, and professional services and other revenue fell 3% to $22.6m. During the quarter, the company opened a data center in Singapore to offer enterprise cloud computing services.

For the first half of the year, the company reported a net income of $39.63m compared to a net income of $19.55m a year ago. Revenue increased 22% to $621m.

Marc Benioff, chairman and chief executive at Salesforce.com, said: "We are pleased to report record revenue and GAAP earnings per share for our fiscal second quarter. We added 3,900 net new customers, bringing our total to more than 63,000, with our service cloud turning in its best quarter ever."

Looking ahead, for the third quarter, the company expects revenue between $323m and $324m, and diluted EPS between $0.15 and $0.16. For fiscal 2010, it raised its revenue and diluted EPS guidance, and expects revenue between $1.27 billion and $1.28 billion, and diluted EPS between $0.60 and $0.61.

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