Callidus Software Increases Sales but Misses Estimates on Earnings

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Callidus Software (NAS: CALD) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Callidus Software beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share grew.

Gross margins were steady, operating margins dropped, net margins shrank.

Revenue details
Callidus Software reported revenue of $22.5 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $22.3 million. GAAP sales were 18% higher than the prior-year quarter's $19.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.11. The three earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS were -$0.11 for Q4 compared to -$0.04 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.6%, about the same as the prior-year quarter. Operating margin was -20.8%, 1,410 basis points worse than the prior-year quarter. Net margin was -16.1%, 850 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $23.0 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $97.6 million. The average EPS estimate is $0.12.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 59 members out of 63 rating the stock outperform, and four members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Callidus Software a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Callidus Software is outperform, with an average price target of $8.42.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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