- Associated Press - Friday, November 5, 2010

NEW YORK (AP) - NetSuite Inc. shares rallied Friday after early worries about the business software maker’s billings faded and the focus shifted to third-quarter results that topped analyst forecasts.

The stock price plummeted by as much as $1.89, or nearly 9 percent, before rebounding to close at $21.67, up 15 cents. Shares have traded between $11.62 and $25.25 over the last 52 weeks.

NetSuite, which is based in San Mateo, Calif., said Thursday that its third-quarter loss fell below $7 million, or 11 cents per share, from a loss of $8 million, or 13 cents per share, a year prior. Revenue rose to $49.7 million from $41.7 million.

Excluding one-time items, the company said it earned 4 cents per share. Analysts polled by Thomson Reuters expected a profit of 3 cents per share on revenue of $48.5 million.

Looking ahead, the company said it expects fourth-quarter adjusted profit of 4 cents per share on $51 million in revenue. In a conference call Thursday, the company also raised its full-year guidance for adjusted profit to 12 cents to 13 cents per share from a prior range of 6 cents to 8 cents per share. The company also raised its full-year revenue outlook to $192 million from prior guidance of between $188 million and $190 million.

Analysts expect fourth-quarter profit of 4 cents per share on revenue of $49.9 million and full-year profit of 12 cents per share on revenue of $189.8 million.

But Wedbush analyst Michael B. Nemeroff said in a note to investors Friday that billings growth of just over 12.5 percent was likely lower than many were expecting, and he reaffirmed a “Neutral” rating and $18 price target on the stock.

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