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NetSuite Loss Widens, But Tops Estimate; Stock Up - Update

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Software maker NetSuite Inc. (N: Quote), Thursday reported a wider fourth-quarter loss, hurt by increased selling and other expenses that offset strong growth in revenues. Nevertheless, excluding items, the company posted a profit that increased from last year and topped Street analysts' estimates, as did revenues. Shares of the company gained more than eight percent in after-hours trade on the Nasdaq.

"In a year that saw Microsoft once again fail to deliver cloud-native ERP solutions, and in a quarter that saw SAP miss their most recent top- and bottom-line forecast as more large enterprises moved to the cloud, NetSuite delivered its best year ever," said NetSuite CEO Zach Nelson.

NetSuite provides cloud-based financials / Enterprise Resource Planning software suites. The San Mateo, California-based company reported fourth-quarter net loss of $9.6 million or $0.13 per share, compared with net loss of $7.6 million or $0.11 per share last year.

Excluding items, adjusted earnings for the quarter were $4.6 million or $0.06 per share, compared with $3.4 million or $0.05 per share in the prior year. On average, 22 analysts polled by Thomson Reuters expected earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter jumped 33 percent to $85 million from $64 million a year ago. Analysts on consensus estimated revenues of $83.04 million for the quarter.

Expenses for the quarter escalated to $67 million from $52 million last year, reflecting mainly higher selling and marketing overheads.

In January, NetSuite said it bought Retail Anywhere, a provider of multi-channel retail management solutions. The acquisition builds on NetSuite's SuiteCommerce platform, delivering the industry's first and only integrated cloud business suite for retailers.

NetSuite closed Thursday's regular trading at $70.23, up $1.28 or 1.86%. In after-hours, the share further gained 8.22% at $76.00. In the past year, the stock has traded in a range of $40.94 - $71.51.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Editors Pick
While buying interest has remained somewhat subdued, stocks are seeing modest strength in mid-day trading on Thursday. The slim gains on the day have lifted the S&P 500 to a new record intraday high above the 1,990 level. New home sales in the U.S. showed a notable decrease in the month of June, according to a report released by the Commerce Department on Thursday, with the steep drop offsetting the jump seen in the previous month. After reporting a modest drop in first-time claims for U.S. unemployment benefits in the previous week, the Labor Department released a report on Thursday showing that initial jobless claims unexpectedly fell to their lowest level in over eight years in the week ended July 19th.
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