The upward momentum continues for Red Hat Inc.
The Durham, N.C., provider of Linux software and services announced on Tuesday that it beat analysts expectations to record an adjusted net income of $1.3 million and earn 1 cent per share in the third quarter, excluding charges of $2.4 million. This compares to an adjusted net loss of $100,000, or break even per share, for the second quarter of fiscal 2002.
Analysts surveyed by Thomson Financial/First Call were expecting shares to break even in the third quarter.
Red Hat reported revenue of $21.5 million for the third quarter ended Nov., 30, 2001, an increase of 2 percent over the second quarter of fiscal 2002.
Red Hat reported a net loss of $15 million, or 9 cents per share, compared with a net loss of $55.3 million, or 33 cents per share in the second quarter fiscal 2002.
Red Hats stock has steadily climbed back from its low of $2.40 in September, driven by increasing optimism about an economic rebound in 2002, and by a Nov. 27 announcement that Red Hat will collaborate with IBM to deliver open source software solutions, services and support for the IBM eServer product line, officials said.
"Increasingly the enterprise buyer is evaluating the low-cost, high-value proposition of the Red Hat Linux and Intel platform against expensive proprietary alternatives," said Red Hat CEO Matthew J. Szulik in a conference call.