Open-Source Software and Linux provider Red Hat Inc. posted its first quarterly profit ever in its third fiscal-2002 quarter as enterprise demand for its Red Hat Linux Advanced Server and other products continued to outpace expectations.
Open-Source Software and Linux provider Red Hat Inc. posted its first quarterly profit ever in its third fiscal-2002 quarter as enterprise demand for its Red Hat Linux Advanced Server and other products continued to outpace expectations.
The Raleigh, N.C., company last week reported net income of $305,000 for the quarter ended Nov. 30, up from a loss of $15.1 million in the same quarter last year. Red Hat also reported a 21 percent rise in revenue, to $24.3 million, in the quarter.
"We have also generated our second consecutive quarter of positive cash flow from operations, which was about $1 million in the third quarter, an increase of 74 percent, or $400,000, compared to ... the second quarter," said Kevin Thompson, Red Hats chief financial officer, in a teleconference presenting the results.
Matt Szulik, Red Hats chairman, president and CEO, said the companys Unix-to-Linux migration campaign, announced last year, continues to deliver. This was reflected in Advanced Server sales, which were up in the quarter, Szulik said. "Enterprise sales now account for 92 percent of our revenue, up from 78 percent a year ago, and we gained 1,000 new Advanced Server customers in the third quarter," Szulik said.
Some 55 percent of Red Hats enterprise revenue came from software subscriptions, with 45 percent from services. This was a shift from the 49 percent revenue reported from subscriptions and 51 percent from services in the second quarter, Szulik said.
Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.
He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.
He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.
He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.
He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.
His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.
For numerous examples of his writing you can search under his name at the eWEEK Website at www.eweek.com.
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