NetSuite CEO says business feels a lot better

NEW YORK Wed May 20, 2009 3:55pm EDT

NEW YORK (Reuters) - NetSuite Inc (N.N) Chief Executive Zach Nelson said on Wednesday he feels "a lot better" about the software company's business in the second quarter than in the first quarter.

Nelson also told the Reuters Global Technology Summit in New York that NetSuite will introduce its first software for Apple Inc's (AAPL.O) iPhone, which will allow customers to use its business programs, during the third quarter of this year.

The executive said he is "very comfortable" with NetSuite's earnings forecasts for the second quarter and the full year.

Business was stronger in April than in March, building on improvement compared with January and February, he said.

"Q2 feels a lot better," he said. "The tone is positive."

Nelson also said his company's non-GAAP gross margin is running at about 70 percent, and he predicted it will stay at that level for about two years before it may increase.

NetSuite, which is majority owned by Oracle Corp's ORCL.O billionaire chief executive, Larry Ellison, sells business software for small and medium-sized companies, though it is trying to expand to divisions of larger corporations.

(For summit blog: blogs.reuters.com/summits/)

(Reporting by David Lawsky and Jim Finkle; editing by Carol Bishopric)

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