Business Software Provider NetSuite Releases First Quarter Results; Names New CFO, COO
May 04, 2010
By Susan J. Campbell, TMCnet Contributing Editor
Cloud-based business software provider NetSuite (News - Alert) Inc. recently announced operating results for its first quarter ended March 31, 2010. Overall revenue for the company in the first quarter of 2010 was $43.9 million, while revenue from the Americas was $35.5 million and international regions revenue totaled $8.4 million.
Operating loss for this time period was $6.6 million, compared to a GAAP operating loss of $4.0 million in the first quarter of 2009. Net loss for the quarter was $7.1 million or $.11 per share. The net loss in the first quarter of 2009 was $3.7 million.
The business software provider saw an improvement in its non-GAAP operating income of 81 percent year-over-year, growing to $1.4 million. Non-GAAP net income for the first quarter was $930,000 or $.01 per share, compared with $1.0 million or $.02 per share in the first quarter of 2009.
Representing the highest total for a quarter in the company's history, calculated bookings reached $47 million, growing 27 percent year-over-year and 2.5 percent sequentially. This sequential growth represents the first time in the company's history as a public company that calculated bookings have grown Q1 over Q4.
'Even in the face of traditional seasonal Q1 headwinds, NetSuite reported its strongest first quarter results as a public company. Revenue, non-GAAP operating income, operating cash flow and calculated bookings all reached record levels,' said Zach Nelson (News - Alert), CEO of NetSuite, in a statement. 'These results show NetSuite's strong momentum in delivering solutions that meet customer requirements to run complex, mission-critical business processes in the cloud.'
In addition to its quarter end results, NetSuite also announced that its current Chief Financial Officer Jim McGeever, will be promoted to Chief Operating Officer, effective July 1, 2010. At that time, Ron Gill, will become the Company's Chief Financial Officer.
'Jim has served as NetSuite's CFO for the past decade. His dedication and deep knowledge of NetSuite's cloud computing solutions, customers and vertical strategy will make him invaluable in his newly expanded role as COO,' Nelson said.
Gill currently oversees the business software provider's accounting and finance functions. Prior to joining the company, he was Vice President of Finance at Hyperion Solutions (News - Alert). He also held a variety of financial positions with several of the world's largest technology companies, including SAP, Dell and Sony.
Gill holds a Master of International Business Studies from the University of South Carolina and a B.A. from Baylor University and is a member of the Board of Regents of the Institute of Certified Management Accountants.
'Ron is an exceptional financial executive who has provided significant leadership in NetSuite's worldwide finance organization. As we continue to expand our leadership in cloud computing, Ron is the ideal executive to help us capitalize on the global opportunities that NetSuite is pursuing,' said Zach Nelson, CEO of NetSuite.
In other NetSuite news, the company announced in March the details of its upcoming partner conference, SuiteCloud 2010, billed as an event bringing together 'luminaries in cloud computing' with partners -- from solution providers to developers to independent software vendors to system integrators, company officials say.
The Software and Information Industry Association (SIIA), the principal trade association for the software and digital content industries, entered into a partnership with NetSuite aimed at helping software companies succeed amid the new business models, expanding regulatory requirements, and the challenging customer dynamics of today's business software industry.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan's articles, please visit her columnist page.
Edited by Patrick Barnard