UPDATE 1-NetSuite posts narrower loss

(Adds outlook, share prices)

LOS ANGELES, May 1 (Reuters) - NetSuite Inc (N.N), a business software maker that is majority owned by billionaire Larry Ellison and went public in December, reported a narrower quarterly loss on Thursday as sales rose 47 percent.

The company posted a first-quarter loss of $2 million, or 3 cents per share, compared with a loss of $9.3 million, or $1.24, a year earlier.

NetSuite shares fell 4.8 percent in after-hours trade to $21.23 from its close of $22.31 on the New York Stock Exchange.

Revenue rose to $34.1 million from $23.2 million.

NetSuite sells software as a subscription service to small and mid-sized companies, whose employees access the programs using regular Web browsers, saving customers the expense of maintaining computers to run the software.

For the second quarter of 2008, NetSuite expects total revenue of $36 million to $36.7 million and a loss, excluding items, of $250,000 to $1 million, or nil to 2 cents per share.

For the full year, it expects total revenue of $154 million to $157 million, with a loss, before items, of $500,000 to $2.5 million, or 1 cent to 4 cents per share.

(Reporting by Sue Zeidler, editing by Richard Chang)