profits up despite service problems

News profits up despite service problems

Tash Shifrin

Customer relationship management software firm has posted record fourth quarter results, despite problems with new datacentre infrastructure that caused service outages. reported revenues of $91.1m (£52.3m) for the quarter, an increase of 67% on the previous year and up 10% on third quarter figures. Profits rose 66%, from $3.59m to $5.96m year on year.

The company has seen its paying subscribers increase by a record 48,000 during the quarter, to a total of around 399,000 – up 76% from the fourth quarter of last year, while customer numbers have hit 20,500.

But Salesforce has admitted that it was badly hit by problems with the $50m new “Mirrorforce” datacentre infrastructure installed in November 2005. Problems with the overhaul of hardware and software had caused more problems than expected, chairman and chief executive Marc Benioff said.

“The vast amount of change caused us to have several challenging days during the quarter, especially in the months of January.” The company said it had been working with its hardware and software suppliers to improve reliability.

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