The Cloud-based ERP outfit announced its last quarter results before it joins Ellison’s team and while it has continued to grow it is also showing increased operating overheads and losses. In other-words if it had not been bought out it could be in for some serious restructuring if it is going to continue.
NetSuite reported a third quarter loss of $34.1 million compared to $37.7 million a year earlier, on revenue of $243.9, up 26 percent. Costs increased to $50.2 million compared to $44.3 million.
The $9.3 million buyout needs to be approved by shareholders on 4 November. Surprisingly, shareholders don’t like it and the meeting could be contentious. The feeling is that Ellison and the Netsuite board have undervalued the company. We would have thought that they only have to look at the numbers to see that it is probably a good idea.
The Netsuite board seems to think the shareholders will go for it. They have said that this is the last time that the company would be making the figures public. After all it is going to be part of Ellison’s empire if the vote goes ahead.