Soleil Securities Adjusts Estimates On Callidus Software

According to Soleil Securities, Callidus Software CALD reported excellent 1Q2011 earnings after the market closed on Tuesday, May 3 by exceeding its and consensus revenue expectations. Soleil Securities said that during the quarter, produced 22% Y/Y pro-forma revenue growth to $19.7 million, 38% subscription growth, and break-even pro-forma EPS. Also, Callidus positively surprised Soleil by reporting stronger than expected recurring revenue of 20% Y/Y growth to $14.7 million, which represents 75% of their total revenue. “This quarter's results support our thesis that the company has returned to sustained top line revenue growth and has successfully moved to a recurring revenue & SaaS model. We believe that the business pipeline remains quite healthy. Deferred revenue grew by 27% Y/Y to $30.1 million and predictable subscription revenue grew by 38% Y/Y to $10.1 million, the third consecutive quarter of impressive growth. Additionally, Callidus has big opportunities to sell its coaching products running in conjunction with the Salesforce.com (CRM: not rated) platform. We believe that significant upside exists to our estimates. After the strong quarter, we are maintaining our Buy rating, slightly adjusting our estimates, and maintaining our one year price target of $10.50.” Callidus Software closed yesterday at $6.53.