Media releases are provided as is by companies and have not been edited or checked for accuracy. Any queries should be directed to the company itself.

NetSuite Announces Q2 09 Results

NetSuite has announced its operating results for its second quarter ended 30 June 2009. The company has posted its third consecutive quarter of non-GAAP operating income and non-GAAP net income; has generated operating cash flow of US$1.4 million, an improvement of US$3.6 million vs the prior quarter; and increased its average sales price by 33 percent over the prior quarter.
  • 31 July, 2009 10:23

<p>NetSuite Inc. (NYSE: N), a leading vendor of cloud computing business management software suites, today announced operating results for its second quarter ended June 30, 2009.</p>
<p>Total revenue for the second quarter of 2009 was US$40.3 million, a 10% increase over the second quarter of 2008. Revenue from the Americas for the second quarter of 2009 was US$32.5 million, while revenue from international regions was US$7.8 million.</p>
<p>On a GAAP basis, net loss for the second quarter of 2009 was US$5.0 million, or US$(0.08) per share, as compared to US$3.1 million, or US$(0.05) per share, in the second quarter of 2008.</p>
<p>Non-GAAP net income for the second quarter of 2009 was US$687,000, or US$0.01 per share, as compared to a non-GAAP net loss of US$900,000, or US$(0.01) per share, for the second quarter of 2008.</p>
<p>Items presented on a non-GAAP basis exclude expenses related to stock-based compensation, the amortization of intangible assets, and transaction costs for business combinations. A reconciliation of GAAP net income/(loss) to non-GAAP net income/(loss) is provided below in a table immediately following the Condensed Consolidated Statements of Operations, along with an explanation of why these non-GAAP financial measures are useful to investors and how they are used by management.</p>
<p>“We were very pleased with our financial performance and strategic execution during the quarter. Once again, we delivered top-line and bottom-line results that exceeded expectations. We also generated operating cash in the quarter, well ahead of our plan. We remain on target to achieve our objective of posting break-even operating cash flow for 2009,” commented Zach Nelson, CEO of NetSuite. “We’re particularly pleased that we not only acquired more new customers during the quarter, but we did so at a higher average sales price. A recent industry report indicates that NetSuite was rated as the fastest growing vendor in the top ten vendors of financial managements systems in North America. As customers accelerate their movement to cloud computing we believe NetSuite will continue to take share from our competitors.”</p>
<p>NetSuite's Second Quarter 2009 Highlights Include:</p>
<p>• Appointed Edward Zander, former Motorola CEO and Sun Microsystems President, to its Board of Directors.</p>
<p>• Announced that NetSuite and NetSuite OneWorld have become the first generally available Software as a Service (SaaS) business management suites to be certified in Germany.</p>
<p>• Announced that NetSuite OneWorld was accredited by the Institute of Chartered Accountants in England &amp; Wales.</p>
<p>• Added Google Checkout functionality to its platform providing instant payment options for buyers in 140 countries.</p>
<p>• Announced a new Financial Planning module to enable business performance management for strategy, planning and execution.</p>
<p>• Received several awards including: a Top 15 CRM Small and Medium Business Software Award for 2009 by strategic advisory service ISM Inc.; a 2009 CRM Excellence Award from Customer Interaction Solutions magazine for NetSuite CRM; winner of Best of SaaS Showplace Award for OpenAir by THINKstrategies, Inc.; and Network World, a prestigious IT publication, listed NetSuite as one of the top 10 cloud computing companies to watch alongside technology leaders Amazon and Google.</p>
<p>• Unveiled a new Financial Edition to help companies speed deployment of business processes to the cloud.</p>
<p>• Announced the availability of OpenAir Mobile for Apple’s iPhone.</p>
<p>About NetSuite</p>
<p>NetSuite Inc. is a leading vendor of cloud computing business management software suites for mid-sized businesses and divisions of large companies. NetSuite enables mid-market companies to manage core business operations in a single system, which includes accounting/ERP, customer relationship management (CRM), and Ecommerce. NetSuite's patent-pending "real-time dashboard" technology provides an easy-to-use view into up-to-date, role-specific business information. For more information about NetSuite, please visit</p>
<p>Cautionary Note Regarding Forward-Looking Statements</p>
<p>This press release and the scheduled conference call contain forward-looking statements relating to expectations, plans, prospects and financial results for NetSuite, including our stated expectation for future earnings, revenue and market share growth. These forward-looking statements are based upon the current expectations and beliefs of NetSuite's management as of the date of this release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and NetSuite disclaims any obligation to update these forward-looking statements.</p>
<p>In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the market for on-demand services may develop more slowly than expected or than it has in the past; continued adverse and unpredictable macro-economic conditions or reduced investments in on-demand applications and information technology spending; quarterly operating results may fluctuate more than expected; unexpected disruptions of service at the Company's data center may occur; a security breach may impact operations; risks associated with material defects or errors in the Company's software or the effect of undetected computer viruses could impact operations; the risk of technological developments and innovations by others; our ability to successfully integrate our acquisition of QuickArrow, Inc.; our ability to successfully identify other businesses and technologies for acquisition that will complement our business and the ability to successfully acquire and integrate those businesses and technologies; the risk of loss of power or disruption in Internet service; failure to manage growth; failure to protect and enforce our intellectual property rights; the ability to manage operations when faced with competitive pricing and marketing strategies by competitors or changing macro-economic conditions; the risk of losing key employees; increased demands on employees and costs associated with operating as a public company; evolving government regulation of the Internet and Ecommerce; changes to current accounting rules; and general political or destabilizing events, including war, conflict or acts of terrorism; and other risks and uncertainties.</p>
<p>Customers who purchase our service should make sure the decisions are based on features that are currently available. Please be advised that any unreleased services or features from NetSuite referenced in today's discussion or other public statements are not currently available and may not be delivered on time or at all.
For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to the Company's Annual Report on Form 10-K filed on March 13, 2009, and any subsequently filed reports on Forms 10-Q and 8-K. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system ("EDGAR") at or NetSuite's Web site at</p>
<p>Non-GAAP Financial Measures</p>
<p>The Company's stated results include certain non-GAAP financial measures, including non-GAAP operating income/(loss), net income/(loss), weighted average shares outstanding, and net income/(loss) per share. Non-GAAP net income/(loss) excludes expenses related to stock-based compensation expense, amortization of intangible assets and transaction costs for business combinations. Non-GAAP net income/(loss) excludes these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. The Company considers these events to be non-routine, and believes these adjustments provide useful comparative information to investors.</p>
<p>The Company considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company and are used by the Company's management for that purpose. In addition, investors often use measures such as these to evaluate the financial performance of a company. Non-GAAP results are presented for supplemental informational purposes only for understanding the Company's operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.</p>
<p>A copy of this press release can be found on the Company's Investor Relations Web site at The contents of the Web site are not incorporated by reference into this press release.</p>
<p>NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.</p>

Most Popular

Editor's Recommendations

Solution Centres


View all events Submit your own security event

Latest Videos

  • 150x50

    CSO Webinar: The Human Factor - Your people are your biggest security weakness

    ​Speakers: David Lacey, Researcher and former CISO Royal Mail David Turner - Global Risk Management Expert Mark Guntrip - Group Manager, Email Protection, Proofpoint

    Play Video

  • 150x50

    CSO Webinar: Current ransomware defences are failing – but machine learning can drive a more proactive solution

    Speakers • Ty Miller, Director, Threat Intelligence • Mark Gregory, Leader, Network Engineering Research Group, RMIT • Jeff Lanza, Retired FBI Agent (USA) • Andy Solterbeck, VP Asia Pacific, Cylance • David Braue, CSO MC/Moderator What to expect: ​Hear from industry experts on the local and global ransomware threat landscape. Explore a new approach to dealing with ransomware using machine-learning techniques and by thinking about the problem in a fundamentally different way. Apply techniques for gathering insight into ransomware behaviour and find out what elements must go into a truly effective ransomware defence. Get a first-hand look at how ransomware actually works in practice, and how machine-learning techniques can pick up on its activities long before your employees do.

    Play Video

  • 150x50

    CSO Webinar: Get real about metadata to avoid a false sense of security

    Speakers: • Anthony Caruana – CSO MC and moderator • Ian Farquhar, Worldwide Virtual Security Team Lead, Gigamon • John Lindsay, Former CTO, iiNet • Skeeve Stevens, Futurist, Future Sumo • David Vaile - Vice chair of APF, Co-Convenor of the Cyberspace Law And Policy Community, UNSW Law Faculty This webinar covers: - A 101 on metadata - what it is and how to use it - Insight into a typical attack, what happens and what we would find when looking into the metadata - How to collect metadata, use this to detect attacks and get greater insight into how you can use this to protect your organisation - Learn how much raw data and metadata to retain and how long for - Get a reality check on how you're using your metadata and if this is enough to secure your organisation

    Play Video

  • 150x50

    CSO Webinar: How banking trojans work and how you can stop them

    CSO Webinar: How banking trojans work and how you can stop them Featuring: • John Baird, Director of Global Technology Production, Deutsche Bank • Samantha Macleod, GM Cyber Security, ME Bank • Sherrod DeGrippo, Director of Emerging Threats, Proofpoint (USA)

    Play Video

  • 150x50

    IDG Live Webinar:The right collaboration strategy will help your business take flight

    Speakers - Mike Harris, Engineering Services Manager, Jetstar - Christopher Johnson, IT Director APAC, 20th Century Fox - Brent Maxwell, Director of Information Systems, THE ICONIC - IDG MC/Moderator Anthony Caruana

    Play Video

More videos

Blog Posts

Media Release

More media release