UPDATE 2-NetSuite loss narrows, sees slower rev growth

(Adds comments from analyst, NetSuite CEO)

By Jim Finkle

BOSTON, Feb 14 (Reuters) - NetSuite Inc (N.N: Quote, Profile, Research), a business software maker majority-owned by Oracle Corp's (ORCL.O: Quote, Profile, Research) billionaire CEO Larry Ellison, forecast slower sales growth this year as it reported a narrower quarterly loss.

In 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 risen 55 percent.

NetSuite also forecast a loss of 1 to 4 cents per share for this year. Analysts on average expect NetSuite to report a 2008 loss of 3 cents per share on revenue of $152.8 million, according to Reuters Estimates.

AMR Research analyst Rob Bois said that while growth was forecast to slow, it would still be a healthy pace for any company, especially in a weak economy.

He said that NetSuite and other software companies that sell their products as services accessed via the Web are poised to grow much more quickly than rivals that offer programs installed on customers' computers.

"They will do better than traditional vendors," Bois said.

NetSuite shares fell 3.8 percent in after-hours trading. They were quoted at $22.60, down from their close of $23.49.