But Wall Street seems fairly happy and I think the game is still about spending to grab cloud market share. The non-GAAP expenses included the usual stock-based composition and certain amortization costs. But there was also a $720,000 charge from "a patent cross licensing agreement with a large technology company which, among other things, resolved a patent dispute over our alleged past usage of the other party's technology," according to a press release. As noted elsewhere in this newsletter, CEO Zach Nelson said that channel sales grew by 60 percent. "We are very happy with where we are with the channel," Nelson said. He noted that new channel members, McGladrey and Accenture, who were signed during the spring, haven't gotten completely up to speed in taking on the product. Nelson also said NetSuite's product continue their penetration upmarket and where the company had previously noted it was being installed in two-tier ERP implementations, that it is increasingly part of a single-tier installation