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.