Web-based software maker Salesforce.com Inc raised its full-year revenue outlook, fueling hopes that cloud computing companies can avoid getting caught up in a possible slowdown in tech spending.
The world's biggest provider of cloud computing technology to businesses raised its full-year revenue outlook on Thursday to between $2.22 billion and $2.23 billion from its previous forecast of $2.15 billion and $2.17 billion.
Salesforce announced the modest increase to its outlook while Silicon Valley veteran Hewlett-Packard cut its outlook and announced it may exit the PC business. HP also said it planned to spend over $10 billion to buy UK software maker Autonomy Corp, which has a fast-growing cloud-computing division.
Cloud computing technologies deliver software, powerful processing capabilities and storage from large, centralized data centers, saving businesses the cost and time of setting up localized computer systems.
Salesforce reported that fiscal second quarter sales surged 38 percent from a year earlier to $546 million, beating the average analyst forecast of $529 million, according to Thomson Reuters I/B/E/S.
It posted adjusted second-quarter profit of 34 cents per share, ahead of the 30 cent average forecast of analysts. The adjustments excluded amortization of purchased intangibles, stock-based expenses and a legal settlement.
Shares of the San Francisco company rose 2 percent to $116.13 after the earnings report, from their close of $114.06 on the New York Stock Exchange.
(Reporting by Jim Finkle; Editing by Phil Berlowitz)