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.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about JBossRed Hat

Show Comments