February 3, 2011 / 11:18 PM / 9 years ago

UPDATE 1-NetSuite posts in-line Q4, sees weak 2011 profit

* Q4 adj EPS $0.04 vs est $0.04

* Q4 rev up 21 pct to $52.1 mln vs est $51 mln

* Sees 2011 profit below estimates

* Shares down 5 pct post mkt

Feb 3 (Reuters) - Business software maker NetSuite Inc N.N posted quarterly results in line with expectations and forecast weaker-than-estimated 2011 profit, as it expects margins at its professional services business to drop.

The company that makes web-based business to manage large amounts of data and customer-relationship management tools, said the roll-out of a revenue recognition rule would hurt gross margins at the segment in the first half of 2011.

NetSuite forecast 2011 adjusted earnings of 16-19 cents per share, against expectations of 22 cents per share, according to Thomson Reuters I/B/E/S. [ID:nWNAB9321]

The firm, which competes with Salesforce.com (CRM.N), posted fourth-quarter net loss of $6.4 million, or 10 cents per share — almost flat year-over-year.

Shares of the San Mateo, California-based company were down 5 percent at $26.50 in extended trading after closing at $27.82 on Thursday on the New York Stock Exchange. (Reporting by Sayantani Ghosh in Bangalore; Editing by Joyjeet Das)

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