Red Hat Beats Estimates and Doubters

 
 
By Steven Vaughan-Nichols  |  Posted 2007-06-28 Email Print this article Print
 
 
 
 
 
 
 

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.
Looking closer at the numbers, Red Hat reported subscription revenue was $103 million, up 44 percent year-over-year and 7 percent sequentially for its first fiscal quarter, which ended on May 31. In other words, business Linux customers are still coming to Red Hat over Oracles RHEL (Red Hat Enterprise Linux) clone, Unbreakable Linux, and Novells SLES (SUSE Linux Enterprise Server). In addition, RHEL 5, which was released this March, is doing well for the company.
Read the full story on Linux-Watch.com: Red Hat Beats Estimates and Doubters
 
 
 
 
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.
 
 
 
 
 
 
 

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