NetSuite 3Q results: More cash flow, record sales; lighting manufacturer win
San Mateo, CA – NetSuite Inc. (NYSE: N), a vendor of cloud computing business management software suites, announced third-quarter 2009 financial results, including more cash flow and record sales. A lighting manufacturing company switched to NetSuite , among other recent wins, NetSuite reported separately.
"We are very pleased to report record revenue and record cash flow,and to report our highest number of NetSuite OneWorld customer wins inany quarter," said NetSuite CEO Zach Nelson. "Our customer wins and newSuiteCloud partnerships indicate customers are running from legacyapplications like SAP and Microsoft Great Plains to NetSuite’s cloudcomputing offerings."
NetSuite reported total NetSuite revenue for third-quarter 2009 of $41.7 million. Revenue from the Americas for third-quarter 2009 was $34.7 million, while revenue from international regions was $7.0 million. On a GAAP (generally accepted accounting principles) basis, net loss for third-quarter 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.
NetSuite’s third quarter 2009 highlights include the following.
– Three technology companies that recently completed IPOs have chosen NetSuite to run key business processes: LogMeIn, OpenTable and SolarWinds;
– Jollibee, among the world’s largest fast-food chains, chose NetSuite OneWorld to manage subsidiaries and divisions across China, Vietnam and the U.S.;
– A partnership with Fujitsu distributes, resells, and supports NetSuite Release J, Japan’s first and only fully-localized, Software as a Service business management suite;
– NetSuite launched on the iPhone with support for dashboards, sales order records, customer records, click-to-call and more; and
– U.S. Postal Service (USPS) shipping services were integrated with NetSuite, providing instant access to key USPS services, including price quotes, shipping label generation, package tracking numbers and customs documentation.
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In a separate Nov. 4 announcement, NetSuite announced that Commco LLC, a Kansas City-based distribution and light manufacturing company and a leading home improvement millwork distributor, is the latest company to successfully switch from SAP R/3 to NetSuite OneWorld, going live on time and on budget, NetSuite said. The move provided the Kansas City-based company substantial savings in its effort to modernize its business operations and eliminate the high cost of maintaining and upgrading SAP’s complex, on-premise software, according to NetSuite. Commco transitioned to NetSuite’s cloud computing platform for its core operational needs, including enterprise resource planning (ERP) functionality such as inventory management, ordering, fulfillment, EDI communications, corporate financials, and reporting; and customer relationship management (CRM) functionality such as sales and customer service management.
Franklin Christopher, president and CEO of Commco, told NetSuite that SAP R/3 had only 30 percent the functionality of NetSuite: "NetSuite Professional Services provided us with a smooth transition that included teaching us how to create our own reporting so that the average employee could customize their own role-based dashboards and reports going forward," Christopher said.
"SAP wanted our business, but our knowing that NetSuite’s entire focus is on SaaS and the depth of functionality they offered compared to SAP Business ByDesign made the choice easy."
Commco customers include high-profile nationwide retailers such as Lowe’s; the eight-year-old company counts 120 employees and $45 million in annual revenue. Christopher said Commco considered SAP’s SaaS product Business ByDesign among its options.
NetSuite OneWorld provides instant access to customizable analytics, the company says, and because NetSuite OneWorld is cloud-based, there’s no need to manage and maintain complex software on desktops and laptops or in a server room, with the associated costs and resources.
– Edited by Mark T. Hoske, electronic products editor, Manufacturing Business Technology MBT www.mbtmag.com