NetSuite Announces Third Quarter 2009 Results


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* Posts Fourth Consecutive Quarter of Non-GAAP Operating Income and
Non-GAAP Net Income
* Generates Operating Cash Flow of $2.0 million, an Improvement of
$5.4 Million Versus the Third Quarter of 2008
* Highest Number of Sales of NetSuite OneWorld in a Single Quarter

SAN MATEO, Calif. – November 4, 2009 – NetSuite Inc. (NYSE: N), a leading vendor of business management software suites, today announced operating results for its third quarter ended September 30, 2009.

Total revenue for the third quarter of 2009 was $41.7 million. Revenue from the Americas for the third quarter of 2009 was $34.7 million, while revenue from international regions was $7.0 million.

On a GAAP basis, net loss for the third quarter of 2009 was $8.0 million, or $(0.13) per share, as compared to a net loss of $6.2 million, or $(0.10) per share, for the third quarter of 2008.

Non-GAAP net income for the third quarter of 2009 was $348,000, or $0.01 per share, as compared to a non-GAAP net loss of $1.7 million, or $(0.03) per share, for the third quarter of 2008.

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.

“We are very pleased to report record revenue and record cash flow, and to
report our highest number of NetSuite OneWorld customer wins in any
quarter,” said NetSuite CEO Zach Nelson. “Our customer wins and new
SuiteCloud partnerships indicate customers are running from legacy
applications like SAP and Microsoft Great Plains to NetSuite’s cloud
computing offerings.”

NetSuite’s Third Quarter 2009 Highlights Include:

* Announced that three technology companies that recently completed
IPOs have chosen NetSuite to run key business processes: LogMeIn, OpenTable
and SolarWinds.

* Announced that Jollibee, one of the world’s largest fast-food
chains, chose NetSuite OneWorld to manage subsidiaries and divisions across
China, Vietnam and the U.S.

* Partnered with Fujitsu to distribute, resell, and support NetSuite
Release J, Japan’s first and only fully-localized, Software as a Service
business management suite.

* Launched NetSuite on the iPhone with support for dashboards, sales
order records, customer records, click-to-call and more.

* Integrated United States Postal Service shipping services with
NetSuite, providing instant access to key USPS services, including price
quotes, shipping label generation, package tracking numbers and customs

Conference Call

In conjunction with this announcement, NetSuite will host a conference call
at 2:00 p.m. PST (5:00 p.m. EST) today to discuss the company’s third
quarter financial results. A live audio webcast and replay of the call,
together with detailed financial information, will be available in the
Investor Relations section of NetSuite’s Web site at

Wl0ZS5jb20*&url=> The live call can be accessed by dialing
800-227-9428 (U.S.) or 785-830-1925 (outside the U.S.) and referencing
passcode: 385-8094. A replay of the call can also be accessed by dialing
888-203-1112 (U.S.) or 719-457-0820 (outside the U.S.), and referencing
passcode: 385-8094.

About NetSuite
NetSuite Inc. is a leading vendor of cloud computing business management
software suites for mid-sized businesses and divisions of large companies.
NetSuite enables market companies to manage core business operations in a
single system, which includes accounting/

erp-overview.shtml> 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


Cautionary Note Regarding Forward-Looking Statements
NetSuite’s scheduled conference call will 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 conference call, 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 made during
the conference call will be based on information available to the Company as
of the date thereof, and NetSuite disclaims any obligation to update these
forward-looking statements.

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 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.

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

Wl0ZS5jb20*&url=> or NetSuite’s Web site at

Non-GAAP Financial Measures
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.

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.

A copy of this press release can be found on the Company’s Investor
Relations Web site at

Wl0ZS5jb20*&url=> The contents of the Web site are not
incorporated by reference into this press release.

Click here to download the press release, financial tables and non-GAAP

NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.

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