Rally Software (RALY) Posts Narrower-than-Expected Q1 Loss; Guides Q2, FY15

Rally Software Development Corp (NYSE: RALY) reported Q1 EPS of ($0.27), $0.23 better than the analyst estimate of ($0.50). Revenue for the quarter came in at $19.4 million versus the consensus estimate of $19.59 million.

"Fiscal year 2015 is an important year for Rally Software and this quarter, while mixed in performance, sets a foundation for executing in the second half of this year," said Rally Software's Chairman and CEO, Tim Miller.

"We continued our success in selling our solution to the large enterprise buyer and clearly enjoyed support from our largest customers. For example, the 7,000 seat upgrade order we enjoyed from one of our top 15 customers - now at 12,000 seats under contract - underscores this aspect of our business. We struggled slightly in selling new seats to new customers, which was due largely to fast growth in quota carrying headcount that caused some execution delay as these new team members trained and learned about their new territories and Rally Software's business."

Rally Software sees Q2 2015 EPS of ($0.42) - ($0.39), versus the consensus of ($0.42). Rally also sees Q2 2015 revenue of $20.2 - $20.8 million, versus the consensus of $22.46 million.

Rally Softwaresees FY2015 EPS of ($1.36) - ($1.31), versus the consensus of ($1.57). Rally Software also sees FY2015 revenue of $87.0 - $90.0 million, versus the consensus of $92.28 million.

For earnings history and earnings-related data on Rally Software Development Corp (RALY) click here.

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