Red Hat profit rises on 42 percent revenue hike

Red Hat grew revenue 42 percent to US$118.9 million in fiscal first quarter

The introduction of a new version of its Linux distribution and new JBoss software helped Red Hat increase profit to US$16.2 million, or US$0.08 a share, on revenue of US$118.9 million, in its fiscal first quarter ended May 31, the company reported Wednesday.

The report compares favorably to the year-ago quarter, in which Red Hat earned a profit of US$13.75 million, or US$0.07 a diluted share on revenue of US$84 million.

The company released Red Hat Enterprise Linux 5 in March, and also introduced new developer class and enterprise class editions of JBoss Java-based software. Red Hat acquired JBoss 2006. Red Hat also rolled out its service-oriented architecture (SOA) strategy in the quarter.

Red Hat said that after excluding one-time charges and adjusting for stock compensation and tax expense, its adjusted net income for the quarter was US$33.7 million, or US$0.16 per diluted share

Red Hat distributes open source Linux software and charges companies a subscription to provide updates and other technical support. The company said US$103 million of the total US$118.9 million in quarterly revenue was subscription revenue.

Charlie Peters, chief financial officer of Red Hat, said the company forecasts revenue of between US$124 million and US$126 million in the current quarter, which ends Aug. 31. The company expects to earn US$0.17 per share in the quarter, excluding one-time expenses and other charges, he said.

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