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Shares of business software and services provider Callidus Software Inc. (CALD - Snapshot Report) hit a 52-week high of $10.15 during the trading session on Oct 9 before closing 15.3% higher at $9.92. The stock was primarily driven by management’s bullish view about reporting a strong third quarter 2013 performance that will exceed its earlier guidance. The stock has a phenomenal year-to-date return of 110.6%.

Based on preliminary results, the company now expects record third quarter revenues in the range of $28.5 million to $29.0 million, up from its previously guided figure of $26.0 million to $27.0 million. The current Zacks Consensus Estimate for third quarter revenues is pegged at $27.0 million. The increase in revenue expectations is largely due to two 7-figure license deals closed during the quarter.

Callidus further expects SaaS (software as a service) revenues during the quarter to be up 22% - 25% year over year, with a billing increase of 32% - 35%. For full year 2013, Callidus has also hiked its revenue guidance from $106.0 million - $109.0 million to $108.5 million - $109.5 million.

Headquartered in Pleasanton, CA, Callidus offers cloud-based solutions to diverse companies across the globe under CallidusCloud trade name. With a premier sales and marketing effectiveness software, it enables organizations to identify the right leads, ensure proper territory and quota distribution, effectively guide sales force, automate quote and proposal generation, and streamline sales compensation. All these backup support and feedback eventually lead business firms to drive bigger deals at a faster pace, thereby making optimal utilization of vital resources for better marketing and smarter selling.

Since its inception in 1996, Callidus has created a niche market for itself - broadly serving telecommunications, insurance, banking, and technology sectors. The stock has a long-term earnings expectation of 20.0%.

Callidus carries a Zacks Rank #4 (Sell). Other stocks that are worth a look in the industry include DST Systems Inc. (DST - Analyst Report), NQ Mobile Inc. and NetSol Technologies, Inc. (NTWK - Snapshot Report), each carrying a Zacks Rank #2 (Buy).

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