Red Hat Swings Back Into Black

By Peter Galli  |  Posted 2003-06-17 Print this article Print

The open-source and Linux provider also significantly reduced its operating loss.

Open-source and Linux provider Red Hat Inc. swung back into the black in the first quarter of its 2004 fiscal year, while at the same time significantly reducing its operating loss. The company posted net income of $1.5 million, or $0.01 a share for the quarter, ended May 31. This compares to a net loss of $273,000, or break-even per share, in the prior quarter, and a net loss of $4.6 million, or $0.03 per share, in the same year-ago quarter. Red Hat also reduced its net operating loss to $1.1 million in the quarter, compared to a net operating loss of $2.4 million in the prior quarter and a net operating loss of $7.2 million in the first quarter of its 2003 financial year.
"Continued scaling of the business model, as the sequential reduction in the companys operating loss of $1.3 million, equated to the sequential increase in revenues," Kevin Thompson, Red Hats chief financial officer, said in a statement released Tuesday.
Red Hat revenue rose 39 percent to $27.2 million for the quarter ended May 31 from the same year-ago quarter. The company also reported 2,000 new sales of annual subscriptions for the Red Hat Enterprise Linux family of technologies. Subscription revenues from Enterprise Technologies grew 14 percent sequentially and 104 percent year-over-year. "Red Hat continues to show strong operating performance, including solid growth in cash flows, deferred revenues, and net income, which translates into continued leverage of our business model," Thompson 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


Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel