Callidus Software Inc. (NASDAQ:CALD) To Back Vodafone’s Sales Commissioning

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Callidus Software Inc. (NASDAQ:CALD) has been selected by Vodafone Germany to support the carrier’s sales commission. Vodafone has specifically selected Callidus Cloud Commissions as its new sales commissioning solution.

Financial details of the agreement were not yet revealed. However, the move indicates the growing adoption of Callidus’ CallidusCloud, which the company says is already being used by more than 70 world-leading telcos.

Callidus Software describes its CallidusCloud as the industry’s one commissions cloud. CallidusCloud is a software-as-a-servicec (SaaS) solution that is designed to help businesses to drive sales performance management, enterprise engagement and sales effectiveness. As such, it enables businesses to close bigger deals quickly.

Mixed quarterly results

The announcement of the deal with Vodafone Germany comes after Callidus Software reported a mixed 2Q2016. While EPS of $0.06 doubled from $0.03 a year ago and handily beat the consensus estimate of $0.05, revenue disappointed. The company reported revenue of $49.8 million, which despite expanding 20% YoY, fell short of the consensus estimate of $50.32 million.

However, management highlighted that fact that recurring revenue is growing at a more rapid clip. Callidus said its total recurring revenue came in at $39.3 million with SaaS business contributing the bulk of the recurring revenue at $36.2 million. SaaS revenue alone rose 33% YoY.

Callidus Software finished 2Q with cash and equivalents totaling $94 million, with cash flow from operations nearly tripling to $6.9 million from $2.6 million in the year-ago quarter.

2016 outlook

Despite exceeding earnings expectations in 2Q and significantly improving its liquidity position, Callidus issued tepid guidance for both 3Q and 2016. For 3Q, the company is looking for EPS in the band of $0.07 to $0.09. Revenue for the quarter is expected in the range of $51.5 to $52.5 million. That compares with EPS of $0.08 on revenue of $53.7 million that Wall Street is looking for in the quarter.

For 2016, Callidus Software guided EPS in the range of $0.25 to $0.29, with revenue being modeled in the band of $203 to $207 million. But analysts on the average are looking for EPS of $0.28 on revenue of at least $208.6 million.

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