NetSuite announces record results

NetSuite has declared its first profitable quarter

On-demand business software provider NetSuite has defied the economic downturn to post record fourth-quarter and fiscal 2008 results, delivering the first profitable quarter in the company's history on both a non-GAAP net profit and a non-GAAP operating basis.

Total revenue for the year was $152.5m (£104.9m), a year-on-year increase of 40.5 per cent, while total revenue for the fourth quarter was $41.4m (£28.5m), a 30.5 per cent increase on the fourth quarter of 2007.

Non-GAAP net income for the fourth quarter 2008 was $534,000, compared to a loss of $1.7m for the previous quarter.

NetSuite chief executive Zach Nelson said in a statement that the company's success is due to its strategy of delivering an integrated suite of applications to small and medium sized businesses using the software-as-a-service model.

"I am especially excited that we posted the first non-GAAP profitable quarter in the company's history, even against the headwinds of global economic challenges," he added.

"This is a strong performance in any quarter, and is especially impressive with business spending on equipment and software falling 27.8 per cent, the worst in a half century."