described above, and standard integration costs and transaction fees expected to
be in the range of $40 to $45 million.
Q2 FY14 non-GAAP EPS: The acquisition is expected to reduce fiscal second quarter non-GAAP EPS by approximately $0.05. This estimate reflects reduced revenue expectations as described above, the company's operating results for the fiscal second quarter and standard integration costs.
Based on the above, Salesforce.com is updating its guidance previously reported on May 23, 2013 as follows:
Q2 FY14 Guidance: Based on an expected late fiscal second quarter close date, this transaction is not expected to have any material impact to salesforce.com's fiscal second quarter FY14 revenue results previously guided on May 23, 2013. Non-GAAP EPS is expected to be in the range of $0.06 to $0.07.
Full Year FY14 Guidance: Revenue for the company's full fiscal year 2014 is projected to be in the range of $3.955 to $4.0 billion, an increase of 30% to 31% year-over-year.
Diluted non-GAAP EPS is expected to be in the range of $0.31 to $0.33. Non-GAAP EPS estimates assume a non-GAAP tax rate of approximately 36%. The non-GAAP EPS calculation assumes an average fully diluted share count of approximately 645 million shares.
These estimates assume a late fiscal second quarter close date, and actual results could differ materially based on the final transaction close date. The company will update full year GAAP EPS guidance upon completion of purchase accounting after the transaction closes.
Non-GAAP Financial Measures: This press release includes information about non-GAAP EPS, non-GAAP tax rates, and constant currency growth rates (collectively the "non-GAAP financial measures"). Non-GAAP EPS estimates exclude the impact of the following non-cash items: stock-based compensation, amortization of acquisition-related intangibles, and the net amortization of debt discount on the company's convertible senior notes, as well as income tax adjustments. The purpose of the non-GAAP tax rate is to quantify the excluded tax adjustments and the tax consequences associated with the above excluded non-cash expense items. These non-GAAP financial measures are not measurements of financial performance prepared in accordance with U.S. generally accepted accounting principles. The method used to produce non-GAAP financial measures is not computed according to GAAP and may differ from the methods used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP.
BofA Merrill Lynch is serving as the financial advisor to salesforce.com. JP Morgan is serving as the financial advisor to ExactTarget.
Management Conference Call
Salesforce.com and ExactTarget will host a conference call to discuss this transaction at 8:00 a.m. (ET) / 5:00 a.m. (PT) on June 4, 2013. A live dial-in is available domestically at 866-901-7332 and internationally at +1-706-902-1764, passcode salesforce.com or 89103168. A live audiocast of the event will be available on the salesforce.com Investor Relations website at http://www.salesforce.com/investor and ExactTarget's website at http://www.ExactTarget.com/company/investor-relations/events-presentations. A replay will be available at 800-585-8367 or +1-855-859-2056 passcode 89103168, until midnight (ET) July 4, 2013.
ExactTarget is a leading global provider of cross-channel digital marketing software-as-a-service solutions that empower organizations of all sizes to communicate with their customers through email, mobile, social media, web and marketing automation. ExactTarget's suite of integrated applications enables marketers to plan, automate, deliver and optimize data-driven digital marketing and real-time communications to drive customer engagement, increase sales and improve return on marketing investment. Headquartered in Indianapolis, Indiana with offices in Asia, Australia, Europe, North America and South America, ExactTarget trades on the New York Stock Exchange under the ticker symbol "ET." For more information, visit www.ExactTarget.com.
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