Boston, MA 06/06/2014 (wallstreetpr) – Rally Software Development Corp (NYSE:RALY) reported its first quarter results on June 5, 2014. The company reported the revenues of $19.4 billion. It was the rise of 21% as compared to the revenues in the same period a year earlier. The GAAP net low came at $8.5 million as compared to the net loss of $5.8 million last year. The company reported non-GAAP loss of $0.27 per share as compared to the loss of $0.86 per share in the same period a year before. The numbers were better than the street’s expectations of $0.50 per share. There were no strong announcements made for the rest of the year.
The cash flow status
Rally Software Development Corp (NYSE:RALY) is the global provider of cloud based solutions. The company reported the cash and cash equivalents excluding restricted cash at $85.7 million. The total cash used in operations stood at $2.8 million. The company also reported a rise of 23% in the total paid seats as compared to the same quarter last year. The total paid seats came at 226,000. The company didn’t offer a strong forecast of earnings for the next quarter. It expects the second quarter non-GAAP loss to come in a range of $0.42 to $0.39. The full year forecast also looks dim. The company expects the non-GAAP loss for the full financial year to come between $1.31 and $1.36.
The problem area
Rally Software Development Corp (NYSE:RALY) might have succeeded in increasing its total paid seats to 226,000. These are the seats of its existing enterprise buyers. The company retained its large customers. But the real problem is to sell the new seats to the new customers. The company didn’t achieve any major success in selling the seats to the new customers. It resulted in execution delay. The company needs to work hard for getting the new customers in the next quarters.
