NetSuite Inc. (N), which makes Web-based business software tools, posted its first quarterly profit Tuesday.

The company posted net income for the quarter ended Dec. 31, 2008, of $534,000, or 1 cent per share, on a non-GAAP basis, compared with a net loss of $842,000, or 1 cent per share in the fourth quarter of 2007.

Wall Street was forecasting a loss per share of 1 cent, according to data from Thomson Reuters.

Revenues rose 30.5% to $41.4 million.

On a GAAP basis, NetSuite posted a loss for the fourth quarter of $4.5 million, or 7 cents per share.

San Mateo, Calif.-based NetSuite, which makes software that enables small and mid-sized businesses to manage finance, competes in the growing market for Web-based business applications, or software-as-a-service, alongside San Francisco-based Salesforce.com Inc. (CRM).

Larry Ellison, Chief Executive Officer of database and applications giant Oracle Corp. (ORCL) is a major stockholder in the company.

Netsuite's shares slumped in 2008 after its initial public offering in December 2007, after launching at $26. On a year-to-date basis shares are down 65%. They closed Tuesday up 0.25% at $7.89.

-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455; jessica.hodgson@dowjones.com