(RTTNews) - Thursday evening, NetSuite Inc.
(N) announced financial results for the first quarter, reporting a narrower loss from last year on a strong 47% revenue growth. The company also provided guidance for the second quarter and reaffirmed its earnings forecast for fiscal 2008, while lifting its revenue outlook for the full-year 2008. Following the announcement, the company's stock fell more than 17% in Thursday's after-hours trading. In Thursday's regular trading session, the stock had closed up more than 13%.
The San Mateo, California-based provider of business application software suites said GAAP net loss for the first quarter narrowed to $2.03 million or $0.03 per share from $9.26 million or $1.24 per share in the year-ago period, a net loss improvement of 78%.
The results for the latest quarter were calculated on 7.50 million outstanding shares, compared to 60.09 million outstanding shares in the comparable quarter a year ago.
The results for the latest quarter included reversal of stock-based compensation expenses of $1.61 million, while the year-ago quarter included $6.96 million of the same.
Non-GAAP net loss for the quarter narrowed to $0.42 million or $0.01 per share from $2.32 million or $0.04 per share in the prior year quarter, a net loss improvement of 82%. On average, nine analysts surveyed by First Call/Thomson Financial expected the company to incur a loss of $0.02 per share for the quarter.
Revenue for the quarter surged 47% to $34.12 million from $23.23 million in the same quarter last year. Nine Wall Street analysts had a consensus revenue estimate of $33.70 million for the quarter.
NetSuite noted that revenues from the Americas were $27.8 million, while the international regions revenues, outside of the Americas, were $6.3 million. The Company also increased their customer count by more than 400 new customers in the first quarter.
Gross profit for the first quarter rose to $24.0 million from $16.33 million in the year-ago quarter.
Operating loss for the quarter narrowed to $3.35 million from $9.26 million in the prior-year quarter, while total operating expenses were $27.35 million, up from $25.58 million in the year-ago quarter.
Cash and cash equivalents at end of the first quarter were $10.98 million, compared to $170.24 million at end of the prior-year quarter.
Commenting on the results, chief executive officer of NetSuite, Zach Nelson said, 'Our first quarter 2008 results and record financial performance are the result of continued execution against our product, distribution and partnership strategies. With the recent introduction of NetSuite OneWorld and our groundbreaking alliance with BT, we continue to extend our leadership in cloud computing and set the stage for continued success.'
Looking ahead to the second quarter, NetSuite expects non-GAAP loss is expected to be in a range $1.0 million to $0.25 million or about $0.02 to breakeven per share on revenue between $36.0 million and $36.7 million.
Analysts are looking for a loss of $0.01 per share on revenues of $36.36 million in the second quarter.
For fiscal 2008, the company reaffirmed it forecast for non-GAAP net loss in a range of $2.5 million to $0.5 million or about $0.04 to $0.01 per share.
However, the company raised its revenue outlook to a range of $154 million to $157 million, from the prior guidance between $153 million and $156 million.
Ten Wall Street analysts, on average, currently expect the company to incur a loss of $0.02 per share on revenues of $155.07 million for the full-year 2008.
N closed Thursday's regular trading session at $22.31, up $2.57 or 13.02% on a volume of 0.59 million shares, higher than the three month average volume of 0.29 million shares. However, in Thursday's after-hours trading, the company's stock fell $3.81 or 17.08% at $18.50.
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