SalesForce.com Reports Another Quarterly Operating Loss (Financial Charts) *EPS $0.00* CRM

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SalesForce.com (CRM) reported FY Q1 2012 financial results on May 19, 2011

*Charts and commentary have been updated for SalesForce.com FY Q1 April 2011 financial results*

SalesForce.com (CRM) Reports Another Quarterly GAAP Operating Loss

SalesForce.com Summary Fiscal Q1 (GAAP) Revenues continue increasing as return on assets decrease. 2 consecutive quarterly GAAP operating losses have been reported. Cash flow per share is a very good $0.99. The 2 most recent quarters have been unimpressive. No matter, the CRM stock price will most likely continue upwards defying the current and past questionable financial performance. CRM trades at 300+ price/earnings ratio and fundamentals have not been a hindrance to this high flying stock. For a technology sector stock, CRM continues significantly under-performing. The stock price is priced for a stellar future performance that does not appear to be on the horizon.

SalesForce.com Income Statement Fiscal Q1 (GAAP) SalesForce.com (CRM) reported total revenues of $504M, a net operating loss -$2.8M, and earnings per share of $0.00. From the prior fiscal quarter Q4 2011, total revenues were up +10.40%, net income down -95.12%, and earnings per share down -100.00%. From the prior year fiscal Q1 2011, these were up +33.85%, down -97.33%, and down -100.00%, respectively. Gross, operating, and net margins were all down, to 79.57%, -0.56%, and 0.11%, respectively. For the prior fiscal quarter Q4 2011, these were 79.79%, -0.09%, and 2.38%, respectively. From the prior year fiscal Q1 2011, these were 81.00%, 8.77%, and 5.27%, respectively. Cash flow from operations was the bright spot at $0.99 per share.

SalesForce.com Balance Sheet Fiscal Q1 (GAAP) SalesForce.com's (CRM) total assets increased +1.19% QoQ to a record $3.13B from the prior quarter of $3.09B. The capital to assets ratio (total stockholders' equity divided by total assets) is a respectable 40.14%, but down from previous quarters and a multi-year low. The current ratio (current assets divided by total assets) is a liquid 37.98% and does not include $758M in noncurrent marketable securities. SalesForce.com (CRM) is liquid with respectable capital. The return on assets peaked in QE October 2009 at 5.13% and has declined each quarter since to the current 1.78% in QE April 2011. The $1.5B+ in cash, cash equivalents, and marketable securities (current and noncurrent), which are 48.7% of the total assets of $3.13B, is pulling down the Return on Assets, along with a lower gross profit margin and net operating margin.

SalesForce.com (CRM) Financial Performance by the Quarters (Charts)

SalesForce.com Earnings Per Share and Cash Flow per Share (Chart) Below is a chart of quarterly earnings per share and cash flow from operations per share. Earnings per share have ranged between $0.00 and $0.17 for the past 17 quarters and remained below $0.20 for all the quarters reviewed. Latest QE April 2011 EPS of $0.00 is at the lowest to-date and a multi-year low. Cash flow per share has been volatile ranging from $0.14 to $1.18. Latest QE April 2011 cash flow per share of $0.99 is just below the prior quarter peak and the bright spot of the most recent quarter.



SalesForce.com Total Revenues, Operating Income, and Net Income (Chart) Below is a chart of quarterly total revenues, operating income, and net income. Total revenues have consistently grown, are at a new high of $504.4M for the latest QE April 2011, and guidance indicates higher in the future. Operating income has not kept pace with total revenues and 2 consecutive GAAP operating losses have been reported, of -$2.8M for QE April 2011 and -$391K for QE January 2011. These operating losses were after the October 2010 record operating income of $35.2M. Net income dropped in QE April 2011 to a meager $530K, a multi-year low. This is after a disappointing $10.9M in QE January 2011, which was the lowest since the QE January 2008. The QE January 2010 net income of $22.415 is the all-time high.

SalesForce.com Gross Margin, Operating Margin, and Net Margin (Chart) Below is a chart of quarterly gross margin, operating margin, and net margin. Gross margin has been stable and remained in the 79%-81% range for the past 13 quarters. Operating margin has fluctuated, been negative for 2 consecutive quarters, and is below the peaks of 9%+ in 2009. Net margin is very low at a dismal +0.11% for the QE April 2011 and is well below the peaks of 2009.

SalesForce.com Return on Assets (Chart) Below is a chart of annual return on average assets per quarter. The total net income for the most recent 4 quarters is divided into average assets for the most recent 4 quarters to obtain a rolling annualized ROA, an annualized return on average assets for the 12 months (4 quarters) ended. SalesForce.com has a historically low ROA for a technology company and doesn't appear to have an effective deployment of assets. The ROA peaked in QE October 2009 at 5.13% and has declined each quarter since to 1.78% in QE April 2011. The $1.52B+ in cash, cash equivalents, and marketable securities, which are 48.7% of the total assets of $3.13B is pulling down the ROA. If this excess liquidity is not going to be used for an acquisition or expansion, the company should retire debt or pay a dividend. Return on assets peaked in the QE October 2009 at 5.13% and have decreased for 6 consecutive quarters to an extremely low 1.78%.

SalesForce.com Growth Rates (Chart) Below is a chart of the quarterly (QoQ, Q/Q, quarterly change) growth rates for revenues and earnings per share. Total revenues QoQ have increased in every quarter on the chart, ranging from +3.65% to +14.16%. Earnings per share QoQ has fluctuated and decreased for 2 consecutive quarters.

SalesForce.com (CRM) Announces Fiscal Fourth Quarter and Full Year Results

SAN FRANCISCO, Calif. – May 19, 2011 – Salesforce.com (NYSE: CRM), the enterprise cloud computing company, today announced results for its fiscal first quarter ended April 30, 2011.. “Salesforce.com has become the first enterprise cloud computing company to reach a $2.0 billion annual revenue run rate," said Marc Benioff, Chairman and CEO. "We are delighted to see our revenue growth rate continue to accelerate.”

- First Enterprise Cloud Computing Company to Exceed $2.0 Billion Annual Revenue Run Rate
- Record Quarterly Revenue of $504 Million, up 34% Year-Over-Year
- Deferred Revenue of $915 Million, up 38% Year-Over-Year
- Operating Cash Flow of $140 Million, down 3% Year-Over-Year
- 5,400 Net New Customers in the Quarter
- Total Customers at 97,700 up 26% Year-Over-Year
- Raises FY12 Revenue Guidance to $2.15 - $2.17 Billion

SalesForce.com (CRM) Guidance

Q2 FY12 Guidance: Revenue for the company's second fiscal quarter is projected to be in the range of approximately $526 million to approximately $528 million. For the second fiscal quarter, the company expects to report a GAAP net loss per share of approximately ($0.01) to breakeven, while diluted non-GAAP EPS is expected to be approximately $0.29 to $0.30. All EPS estimates include a one-time tax benefit of $0.02, associated with the acquisition of Radian6. The non-GAAP estimate excludes the effects of stock-based compensation expense, expected to be approximately $54 million, amortization of purchased intangibles related to acquisitions, expected to be approximately $17 million, and non-cash interest expense related to the company's convertible senior notes, expected to be approximately $3 million. EPS estimates assume a GAAP tax rate of 113%, and a non-GAAP tax rate of 30%. For the purpose of the EPS calculation, assume an average basic share count of approximately 136 million shares, and an average diluted share count of approximately 144 million shares. Salesforce.com completed its previously announced acquisition of Radian6 on May 2, 2011, and these estimates include the forecasted operating results for Radian6 from that date forward. Radian6 estimates incorporate a preliminary purchase price allocation, and are therefore subject to change.

Full Year FY12 Guidance: Revenue for the company's full fiscal year 2012 is projected to be in the range of approximately $2.15 billion to approximately $2.17 billion. For the full fiscal year 2012, the company expects to report a GAAP net loss per share of approximately ($0.03) to ($0.01), while diluted non-GAAP EPS is expected to be approximately $1.30 to $1.32. All EPS estimates include a one-time tax benefit of $0.04, associated with the acquisition of Radian6. The non-GAAP estimate excludes the effects of stock-based compensation expense, expected to be approximately $238 million, amortization of purchased intangibles related to acquisitions, expected to be approximately $60 million, and non-cash interest expense related to the convertible senior notes, expected to be approximately $11 million. EPS estimates assume a GAAP tax rate of 113%, and a non-GAAP tax rate of 33%. For the purpose of the EPS calculation, assume an average basic share count of approximately 136 million shares, and an average diluted share count of approximately 145 million shares. Salesforce.com completed its previously announced acquisition of Radian6 on May 2, 2011, and these estimates include the forecasted operating results for Radian6 from that date forward. Radian6 estimates incorporate a preliminary purchase price allocation, and are therefore subject to change.

About SalesForce.com

Salesforce.com is the enterprise cloud computing company that has transformed the way companies collaborate and communicate. Salesforce.com is leading the effort to bring Cloud 2, the next paradigm for computing, to the enterprise by offering its customers the social collaboration, mobility and openness that are the hallmark of this new world. The company’s platform and application services include:

* Salesforce Chatter, a private social network for your enterprise

* The Sales Cloud, for sales force automation and contact management

* The Service Cloud, for customer service and support solutions

* Radian6, for social media monitoring and engagement

* The Jigsaw Data Cloud, for ensuring data integrity and quality

* The Force.com platform, for custom application development

* Heroku, for building social and mobile apps in Ruby

* The AppExchange, the world’s leading marketplace for enterprise cloud computing applications

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Samsung Top USA Handset Manufacturer (Charts) *Market share 24.5% in competitive sector*

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Samsung Was Top USA Handset Manufacturer in Q1 2011 

Samsung Top USA Handset Manufacturer

comScore announced May 6, 2011 that the Samsung was the largest USA handset manufacturer with a market share with 24.5% in the first quarter of 2011. Samsung continues its lead over LG, which had a 20.9% market share. Motorola was third with 15.8%, followed by Research in Motion (RIM) with 8.4%,  Apple with 7.9%, and finally "Other" at 22.5%.

Samsung Led in First Quarter 2011

Samsung Led in Fourth Quarter 2010

The quarter on quarter (QoQ) change in market share from the fourth quarter 2010 to the first quarter 2011 saw Samsung market share dip slightly from 24.8% to 24.5%. LG held steady at 20.9%. Motorola slipped from 16.7% to 15.8%. Research in Motion (RIM) also slipped slightly from 8.5% to 8.4%. Apple gained market share from 6.8% to 7.9%. "Other" increased from 22.3% to 22.5%.

comScore Reports March 2011 U.S. Mobile Subscriber Market Share

Google and Apple Gain Ground in Smartphone Market

RESTON, VA, May 6, 2011 – comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released data from the comScore MobiLens service, reporting key trends in the U.S. mobile phone industry during the three month average period ending March 2011. The study surveyed more than 30,000 U.S. mobile subscribers and found Samsung to be the top handset manufacturer overall with 24.5 percent market share. Google Android led among smartphone platforms with 34.7 percent market share.

OEM Market Share

For the three month average period ending in March, 234 million Americans ages 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 24.5 percent of U.S. mobile subscribers. LG ranked second with 20.9 percent share, followed by Motorola (15.8 percent) and RIM (8.4 percent). Apple continued to gain share following the launch of the Verizon iPhone, up 1.1 percentage points to reach 7.9 percent of subscribers.

 

 

About comScore

comScore is a global leader in measuring the digital world and the preferred source of digital marketing intelligence. Through a powerful combination of behavioral and survey insights, comScore enables clients to better understand, leverage and profit from the rapidly evolving worldwide web and mobile arena.

comScore provides syndicated and custom solutions in online audience measurement, e-commerce, advertising, search, video and mobile and offers dedicated analysts with digital marketing and vertical-specific industry expertise. Advertising agencies, publishers, marketers and financial analysts turn to comScore for the industry-leading solutions needed to craft successful digital, marketing, sales, product development and trading strategies.

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Intel Announces Major Breakthrough in Microprocessors (Video) *Tri-Gate: world's first mass-produced 3-D transistors* INTC

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Intel announces a major breakthrough and historic innovation in microchips: the world's first 3-D transistors in mass production

Intel has announced a major breakthrough in microchips on May 4, 2011. Intel unveiled Tri-Gate, a 3-D transistor ready for mass production in 2012. The highlights of Intel's announcement:

● Intel announces a major technical breakthrough and historic innovation in microprocessors: the world's first 3-D transistors, called Tri-Gate, in a production technology.

● The transition to 3-D Tri-Gate transistors sustains the pace of technology advancement, fueling Moore's Law for years to come.

● An unprecedented combination of performance improvement and power reduction to enable new innovations across a range of future 22nm-based devices from the smallest handhelds to powerful cloud-based servers.

● Intel demonstrates a 22nm microprocessor – codenamed "Ivy Bridge" – that will be the first high-volume chip to use 3-D Tri-Gate transistors.

An Intel video and the Intel press release are below.

Video Animation: Mark Bohr Gets Small : 22nm Explained "The performance gains and power savings of Intel's unique 3-D Tri-Gate transistors are like nothing we've seen before. This milestone is going further than simply keeping up with Moore's Law. The low-voltage and low-power benefits far exceed what we typically see from one process generation to the next. It will give product designers the flexibility to make current devices smarter and wholly new ones possible. We believe this breakthrough will extend Intel's lead even further over the rest of the semiconductor industry." - Mark Bohr, Intel Senior Fellow

More than one billion transistors on this single chip

Intel Reinvents Transistors Using New 3-D Structure

SANTA CLARA, Calif., May 4, 2011 - Intel Corporation today announced a significant breakthrough in the evolution of the transistor, the microscopic building block of modern electronics. For the first time since the invention of silicon transistors over 50 years ago, transistors using a three-dimensional structure will be put into high-volume manufacturing. Intel will introduce a revolutionary 3-D transistor design called Tri-Gate, first disclosed by Intel in 2002, into high-volume manufacturing at the 22-nanometer (nm) node in an Intel chip codenamed "Ivy Bridge." A nanometer is one-billionth of a meter.

The three-dimensional Tri-Gate transistors represent a fundamental departure from the two-dimensional planar transistor structure that has powered not only all computers, mobile phones and consumer electronics to-date, but also the electronic controls within cars, spacecraft, household appliances, medical devices and virtually thousands of other everyday devices for decades.

"Intel's scientists and engineers have once again reinvented the transistor, this time utilizing the third dimension," said Intel President and CEO Paul Otellini. "Amazing, world-shaping devices will be created from this capability as we advance Moore's Law into new realms."

Scientists have long recognized the benefits of a 3-D structure for sustaining the pace of Moore's Law as device dimensions become so small that physical laws become barriers to advancement. The key to today's breakthrough is Intel's ability to deploy its novel 3-D Tri-Gate transistor design into high-volume manufacturing, ushering in the next era of Moore's Law and opening the door to a new generation of innovations across a broad spectrum of devices.

Moore's Law is a forecast for the pace of silicon technology development that states that roughly every 2 years transistor density will double, while increasing functionality and performance and decreasing costs. It has become the basic business model for the semiconductor industry for more than 40 years.

Unprecedented Power Savings and Performance Gains

Intel's 3-D Tri-Gate transistors enable chips to operate at lower voltage with lower leakage, providing an unprecedented combination of improved performance and energy efficiency compared to previous state-of-the-art transistors. The capabilities give chip designers the flexibility to choose transistors targeted for low power or high performance, depending on the application.

The 22nm 3-D Tri-Gate transistors provide up to 37 percent performance increase at low voltage versus Intel's 32nm planar transistors. This incredible gain means that they are ideal for use in small handheld devices, which operate using less energy to "switch" back and forth. Alternatively, the new transistors consume less than half the power when at the same performance as 2-D planar transistors on 32nm chips.

"The performance gains and power savings of Intel's unique 3-D Tri-Gate transistors are like nothing we've seen before," said Mark Bohr, Intel Senior Fellow. "This milestone is going further than simply keeping up with Moore's Law. The low-voltage and low-power benefits far exceed what we typically see from one process generation to the next. It will give product designers the flexibility to make current devices smarter and wholly new ones possible. We believe this breakthrough will extend Intel's lead even further over the rest of the semiconductor industry."

Continuing the Pace of Innovation - Moore's Law

Transistors continue to get smaller, cheaper and more energy efficient in accordance with Moore's Law – named for Intel co-founder Gordon Moore. Because of this, Intel has been able to innovate and integrate, adding more features and computing cores to each chip, increasing performance, and decreasing manufacturing cost per transistor.

Sustaining the progress of Moore's Law becomes even more complex with the 22nm generation. Anticipating this, Intel research scientists in 2002 invented what they called a Tri-Gate transistor, named for the three sides of the gate. Today's announcement follows further years of development in Intel's highly coordinated research-development-manufacturing pipeline, and marks the implementation of this work for high-volume manufacturing.

The 3-D Tri-Gate transistors are a reinvention of the transistor. The traditional "flat" two-dimensional planar gate is replaced with an incredibly thin three-dimensional silicon fin that rises up vertically from the silicon substrate. Control of current is accomplished by implementing a gate on each of the three sides of the fin – two on each side and one across the top -- rather than just one on top, as is the case with the 2-D planar transistor. The additional control enables as much transistor current flowing as possible when the transistor is in the "on" state (for performance), and as close to zero as possible when it is in the "off" state (to minimize power), and enables the transistor to switch very quickly between the two states (again, for performance).

Just as skyscrapers let urban planners optimize available space by building upward, Intel's 3-D Tri-Gate transistor structure provides a way to manage density. Since these fins are vertical in nature, transistors can be packed closer together, a critical component to the technological and economic benefits of Moore's Law. For future generations, designers also have the ability to continue growing the height of the fins to get even more performance and energy-efficiency gains.

"For years we have seen limits to how small transistors can get," said Moore. "This change in the basic structure is a truly revolutionary approach, and one that should allow Moore's Law, and the historic pace of innovation, to continue."

World's First Demonstration of 22nm 3-D Tri-Gate Transistors

The 3-D Tri-Gate transistor will be implemented in the company's upcoming manufacturing process, called the 22nm node, in reference to the size of individual transistor features. More than 6 million 22nm Tri-Gate transistors could fit in the period at the end of this sentence.

Today, Intel demonstrated the world's first 22nm microprocessor, codenamed "Ivy Bridge," working in a laptop, server and desktop computer. Ivy Bridge-based Intel® Core™ family processors will be the first high-volume chips to use 3-D Tri-Gate transistors. Ivy Bridge is slated for high-volume production readiness by the end of this year.

This silicon technology breakthrough will also aid in the delivery of more highly integrated Intel® Atom™ processor-based products that scale the performance, functionality and software compatibility of Intel® architecture while meeting the overall power, cost and size requirements for a range of market segment needs.

About Intel

Intel, the world leader in silicon innovation, develops technologies, products, and initiatives to continually advance how people work and live. Founded in 1968 to build semiconductor memory products, Intel introduced the world's first microprocessor in 1971. Intel's mission statement, values, and objectives:

Our mission

Delight our customers, employees, and shareholders by relentlessly delivering the platform and technology advancements that become essential to the way we work and live.

Our values

Customer orientation

Results orientation

Risk taking

Great place to work

Quality

Discipline

Our objectives

Extend our silicon technology and manufacturing leadership

Deliver unrivaled microprocessors and platforms

Grow profitability worldwide

Excel in customer orientation

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*Information courtesy of Intel*

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