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  Tutorial: Red Hat Continues to Cash In

Red Hat Continues to Cash In

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The total revenue for its fiscal third quarter, which ended Nov. 30, 2005, was $73.1 million, an increase of 44 percent from the year ago quarter and 11 percent from the prior quarter.

RHEL (Red Hat Enterprise Linux) subscription revenue provided the bulk of the income. The total subscription revenue was $60.2 million. This is up 54 percent year-over-year and 11 percent from the prior quarter.

Red Hat Inc. also reported operating income of $18.7 million. This is a 147 percent increase from the year ago quarter and a 57 percent increase from the prior quarter.

For stock holders, the earnings per diluted share were 12 cents for the quarter, an increase from 9 cents in the prior quarter and 6 cents in the year-ago quarter.

This was well ahead of expectations.

Financial analysts polled by Thomson Financial had expected Red Hat to earn 9 cents per share for the quarter with $71.1 million in revenue.

"We believe that our third-quarter revenue growth places Red Hat among the fastest growing mid-cap technology companies in the world," said Dion Cornett, Red Hat's VP of investor relations, in a statement.

In advance of the earnings announcement, Red Hat stock had gone up 4.6 percent to $26.56. This set a new high for the year. In after-market trading, Red Hat was continuing its upward climb.


 

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