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.
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.