First Profitable Year for Netsuite?

By Reuters  |  Posted 04-13-2009 Print Email

Analysts expect 11-year-old NetSuite to post its first profitable year in 2009 as the San Mateo, California-based company's revenue grows 15 percent to $176 million, according to Reuters Estimates. By comparison, they expect SAP to post revenue of 11.8 billion euros ($15.8 billion) and Oracle to report full-year revenue of $23 billion.

The source said NetSuite would soon announce the connection software for SAP, but hold off on unveiling the product that works with Oracle. NetSuite may choose to downplay its efforts to take business away from Oracle due to the Ellison connection.

While Ellison and his family own about 61 percent of NetSuite, his influence over operations is limited. Prior to NetSuite's December 2007 initial public offering, Ellison put the 52 percent stake in NetSuite that he directly owns in a "lockbox" company, effectively stripping him of voting powers, and thereby reducing concerns that his involvement with Oracle could create a conflict of interest.

NetSuite developed SuiteCloud Connect using tools known as application program interfaces, or APIs, that are already built into SAP and Oracle programs, as well as software from most vendors.

Those APIs are open to all programmers and have previously allowed NetSuite customers to develop their own integration software for rolling up financial data into the parent company's computer systems.

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