Red Hat's Q3 sales jump, but still sees losses

Citing steady global demand for its products, Red Hat yesterday reported a healthy jump in third-quarter revenues, but still posted a net loss for the quarter ending November 30.

The Linux distributor's revenue for its third quarter totalled $US5.4 million, up 63 percent from $3.3 million in the same period a year ago. It also recorded a net loss of $3.6 million, or 5 cents per share for the quarter, compared to net income of $100,000, or no cents per share, in the third quarter of fiscal 1999.

The company's third-quarter revenue reflects Red Hat's adoption in May of a subscription-based revenue recognition policy, Red Hat said in a statement.

Red Hat also yeseterday announced a two-for-one stock split. Each Red Hat shareholder recorded as of December 27, 1999, will receive an additional share for each share of common stock held.

There are currently approximately 68.8 million shares of Red Hat common stock outstanding, Red Hat said. That will increase to approximately 137.6 million shares following the stock split. The new shares will be issued on January 7, 2000, Red Hat said.

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