Is Red Hat in Trouble?

By Steven Vaughan-Nichols  |  Posted 2006-09-27 Print this article Print

News Analysis: The market dumped Red Hat, but the Linux company's financial news really wasn't bad at all. (Linux-Watch)

Red Hats total revenue for its fiscal 2007 second quarter may have grown, but when the second-quarter profit slipped 34 percent because of stock compensation expenses, the stock-market had a fit and Red Hats stock dropped 23.21 percent to $20.21 a share. Was the news really that bad? It doesnt look like it was that awful. Red Hats total revenue for the quarter was $99.7 million, an increase of 52 percent from the year-ago quarter and 19 percent from the prior quarter.
Click here to read an eWEEK Labs review of Red Hat Enterprise Linux 5 Beta 1.
Subscription revenue was $84.9 million, up 56 percent year-over-year and 19 percent sequentially. JBoss-related revenue of $7 million was at the top of managements previously provided guidance. Red Hat Enterprise Linux OEM (original equipment manufacturer) revenue grew 90 percent year-over-year. The net income for the quarter was $11.0 million or $0.05 per diluted share, compared with $16.7 million or $0.09 per diluted share for the second quarter of the last fiscal year. Read the full story on Linux-Watch: Is Red Hat in Trouble? Check out eWEEK.coms for the latest open-source news, reviews and analysis.
Steven J. Vaughan-Nichols is editor at large for Ziff Davis Enterprise. Prior to becoming a technology journalist, Vaughan-Nichols worked at NASA and the Department of Defense on numerous major technological projects. Since then, he's focused on covering the technology and business issues that make a real difference to the people in the industry.

Submit a Comment

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

Rocket Fuel