Deadline for Oracle’s buyout is fast approaching
Cloud financials and ERP outfit NetSuite revenue for Q3 jumped to $243.9 million, a 26% increase over the same period last year.
Recurring revenue from subscription and support was $190.0 million, a 23% increase over the third quarter of 2016. Non-recurring revenue from professional services and other was $53.9 million, a 41% increase over the same period in the prior year.
Cash flows from operations were $62.0 million in the third quarter of 2016, a 126% increase over the same period in the prior year.
On a GAAP basis, net loss for the third quarter of 2016 was $34.1 million, or $(0.42) per share, as compared to a net loss of $37.3 million, or $(0.47) per share, in the third quarter of 2015.
Non-GAAP net income for the third quarter of 2016 was $16.1 million, or $0.20 per share, as compared to a non-GAAP net income of $2.6 million or $0.03 per share, in the third quarter of 2015.
Earlier this month Oracle issued a final tender extension on its plans to acquire Netsuite.
It said: “Oracle…has extended the expiration of its tender offer for the acquisition of NetSuite Inc. to Friday, November 4, 2016. This will be the final extension that Oracle is obligated to make under the merger agreement. In the event that a majority of NetSuite’s unaffiliated shareholders do not tender sufficient shares to reach the minimum tender condition, Oracle will respect the will of NetSuite’s unaffiliated shareholders and terminate its proposed acquisition. Napa Acquisition Corporation, a subsidiary of OC Acquisition LLC, a subsidiary of Oracle Corporation, has extended its all-cash tender offer for $109.00 per share for all of the issued and outstanding shares of common stock, par value of $0.01 per share (the “Shares”), of NetSuite Inc. to 12:00 Midnight, Eastern time, at the end of Friday, November 4, 2016. Per the terms of the merger agreement, a majority of the unaffiliated Shares, or 20,403,928 out of 40,807,854 total unaffiliated Shares, must be tendered in order for the minimum condition to be satisfied and the tender offer to be completed. In aggregate, there are approximately 81,474,150 Shares issued and outstanding as of October 5, 2016.”
In its financials statement Netsuite said: “As with Q2, following the announcement made on July 28, 2016 regarding NetSuite’s entry into a definitive agreement to be acquired by Oracle, the Company will not provide outlook for its fourth quarter 2016 financial results. Furthermore, the Company does not expect to achieve its previously-issued full year revenue outlook range of $955 million to $975 million and is withdrawing all previously-issued financial outlook for the full year 2016.”
Netsuite was formed In 1998, it describes itself as the first cloud company.