DOW JONES NEWSWIRES 
 

Salesforce.com Inc.'s (CRM) fiscal fourth-quarter net income surged 86% on subscription and support-revenue growth and improved margins.

Following the strong results, shares were up 10% to $30.90 in after-hours trading.The stock has lost about half its value since September.

Salesforce.com's results topped analysts' estimates, as some analysts were concerned that the fast-growing online business-services company could face lower renewal rates due to layoffs and economic weakness. Earlier this month, the departures of President and Chief Strategy Officer Steve Cakebread and two sales-related executives raised red flags about the company's performance.

For the period ended Jan. 31, Salesforce.com reported net income of $13.8 million, or 11 cents a share, up from $7.4 million, or 6 cents a share, a year earlier.

Revenue grew by 34% to $289.6 million amid subscription and support-revenue growth.

In November, the company projected earnings of 6 cents to 7 cents a share on revenue of about $284 million to $285 million.

Gross margin rose to 79.7% from 78.5%.

The company's paying customer base grew by about 7% to 55,400.

Salesforce.com expects fiscal first-quarter net income of about 10 cents to 11 cents a share on revenue of $304 million to $305 million. Analysts polled by Thomson Reuters on average forecast net income of 10 cents a share on revenue of $305 million.

For the year, the company sees net income of 54 cents to 55 cents and lowered its revenue view to $1.3 billion to $1.33 billion from November's $1.35 billion to $1.36 billion.

Last last year, Salesforce.com formed separate partnerships with Internet company Google Inc. (GOOG) and social-networking site Facebook, underlining growing competition in cloud-computing services, the growing use of the Internet to access both databases and software applications hosted by service providers.

-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com