UPDATE 3-NetSuite loss narrows, sees slower revenue growth

(Adds comments from NetSuite CEO)

By Jim Finkle

BOSTON, Feb 14 (Reuters) - NetSuite Inc (N.N: Quote, Profile, Research, Stock Buzz), a business software maker majority-owned by Oracle Corp's (ORCL.O: Quote, Profile, Research, Stock Buzz) billionaire CEO, Larry Ellison, forecast slower sales growth in 2008 because it had not expanded its sales force substantially, and its shares fell 4 percent.

Along with its first earnings report since going public in December, NetSuite on Thursday predicted 2008 sales between $153 million and $156 million, which would mean growth of at most 44 percent. Sales last year had grown 55 percent.

Investors have high hopes for NetSuite, which sells software for small and medium-sized businesses. It is one of the largest providers of software as a service, delivered to customers over the Web.

While it is early days, some analysts say the software industry is at the beginning of a major shift to that sales and distribution model.

Chief Executive Zach Nelson, whose company is unprofitable and expects a 2008 loss, said this year's sales growth would be restrained by the size of his sales force, which did not grow in 2007.

"Salespeople can basically do one deal per month," he told Reuters in an interview. "When you don't add salespeople for a year, you basically miss out on those deals."

This year NetSuite plans to boost its sales force to 200 people from 135 at the end of last year.