May 28, 2010 / 8:44 PM / 9 years ago

UPDATE 1-Salesforce says Microsoft suit could hurt profit

* Salesforce says profit could be hurt for one quarter

* Doesn’t believe overall financial health to suffer

* Microsoft filed lawsuit on May 18

* Salesforce says it has discussed matter with Microsoft

* Salesforce says analyzing merit of Microsoft claims (Adds details from Salesforce, background on lawsuit)

BOSTON, May 28 (Reuters) - Salesforce.com Inc (CRM.N) said a recent lawsuit by Microsoft Corp (MSFT.O) could hurt Salesforce’s profits for one quarter, though the litigation is unlikely to derail the company’s overall financial health.

Microsoft filed a complaint on May 18, charging that Salesforce’s web-based software for managing sales activities infringes nine of its patents.

The software giant alleged that Salesforce.com was using its technology in software menus, toolbars and graphical interface features, as well as in the way that it obtains data from remote computers.

Salesforce said on Friday that it was still investigating the merits of the claims, though the two companies had discussed the matter since Microsoft filed its suit last week.

“The company continues to analyze the potential merits of these claims, the potential defenses to such claims and potential counter claims,” Salesforce said in a 10-Q quarterly regulatory filing with the U.S. Securities and Exchange Commission.

Microsoft’s suit was filed in federal court in Seattle, close to the headquarters of the world’s biggest software maker in Redmond, Washington.

The case is: Microsoft Corp v Salesforce.com Inc, case number 2:10-cv-00825, in the U.S. District Court, Western District of Washington at Seattle. (Reporting by Jim Finkle with additional reporting by Bill Rigby; editing by Carol Bishopric)

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