For some time, I've been bearish on enterprise software developer Callidus Software
And yes, I expect the traction to continue.
In the fiscal fourth quarter, sales increased 40% to $24 million. There was also strength in software license revenues, which increased 25% to $9.1 million. These revenues generally lead to ongoing service and maintenance income.
Callidus also showed much improvement on the bottom line. Net income inched into the black at $102,000, which compares to a loss of $1.5 million, or $0.06 per share, in the same period a year ago. The current quarter's figure includes a charge of $1.1 million for stock-based compensation.
Founded in 1996, Callidus is a developer of Enterprise Incentive Management (EIM) software, which helps administer, analyze, and monitor compensation for sales forces. The software is focused primarily on Global 2000 customers, such as Nokia
Over the past year, Callidus has been investing more in its Web-based software offerings. Increasingly, this is something customers are demanding -- which has propelled the success of upstarts like Salesforce.com
For example, in the fourth quarter, Callidus posted $1.6 million revenues for its on-demand bookings. This may not seem like a lot, but in the same period in 2005, such revenues were nonexistent.
Going forward, Callidus pegs first-quarter revenues of $20.5 million to $22 million, which is up 21% to 29% from the year-ago numbers. However, this may prove to be conservative.
The reason is the alliance with SAP
So yes, Callidus is giving me some good reasons to forget my bearish sentiments. And with its on-demand offering and renewed focus on getting new customers, the bullishness may continue for some time.
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