Red Hat Beats Estimates and Doubters
Despite Oracle's RHEL clone, Microsoft's Linux partnerships and all the rest, Red Hat turns in a great quarter.The big Linux-business question of the latest financial quarter was: Would Red Hat be battered by Oracle? Knocked around by Microsoft and its new Linux partners, Novell, Xandros and Linspire? Daunted by a Sun revival? Or would the Raleigh, N.C.-based Linux company turn in a great quarter? And, the answer is, with total revenue of $118.9 million, an increase of 42 percent from the year ago quarter and up 7 percent from the prior quarter, Red Hat is back to kicking rump and taking names in business Linux. Net income for the quarter was $16.2 million, or $0.08 per diluted share, compared with $13.8 million, or $0.07 per diluted share, in the year ago quarter. Non-GAAP adjusted net income for the quarter was $33.7 million, or $0.16 per diluted share.
These results beat analysts estimates of earnings of 15 cents per share on $117.1 million in revenue.