Red Hat profit, revenue continue to rise in strong Q2
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(InfoWorld) - Global expansion and strong Enterprise Linux subscription sales lifted Red Hat's revenue and net income to double-digit growth for its fiscal 2008 second quarter. The company reported profit of $18.2 million, or $0.09 per share, an increase of 64 percent year over year for the quarter that ended Aug. 31. Last year for the same quarter, Red Hat reported profit of $11.04 million. Revenue for the most recent second quarter was $127.3 million, an increase of 28 percent over the same quarter last year when the company reported revenue of $99.67 million. Non-GAAP (generally accepted accounting principles) adjusted net income for the quarter was $36.9 million, or $0.17 per share, a figure in line with consensus estimates from analysts at Thomson First Call. Subscriptions revenue continued to outshine revenue from training and services, though both segments saw increases for the quarter. Revenue from subscriptions comprised $109.17 million, or 86 percent of revenue, while revenue from training and services was $18.1 million, or 14 percent. Red Hat attributed its strong growth to overseas expansion, particularly in Japan, where a Nikkei Market Access survey ranked Red Hat Japan the number-one technology vendor that customers intend to conduct business with in the future. The company also saw increases in operating margin and operating cash flow, business performance improvements that are important to Red Hat's global expansion, said Charlie Peters, executive vice president and CFO, in a statement. Non-GAAP operating margin was 20.7 percent for the quarter, an increase from 17.8 percent year over year. Non-GAAP operating cash flow was $63.7 million for the quarter, an increase of 43 percent year over year and 22 percent, sequentially. Red Hat continues to be the leading commercial provider of Linux server software, but the company also expanded its portfolio of open-source products for enterprise customers in the second quarter. Notable product releases during the quarter were JBoss Enterprise Application Platform 4.2, software infrastructure to help enterprises migrate legacy applications to an open-source platform, and a beta of Red Hat Developer Studio, a development runtime and set of open-source tools built on the popular Eclipse development framework. Red Hat also made gains in increasing support among third-party applications for Red Hat Enterprise Linux and passed the 3,000 mark for the number of applications certified to run on its enterprise OS. On a conference call Tuesday, Red Hat Chairman, CEO and President Matthew Szulik announced some changes to Red Hat's business structure as the company prepares to expand from a Linux company into a full-service enterprise software and services provider. Beginning Tuesday, the company is split into three lines of business: infrastructure, middleware, and online services. Each of those divisions will have a general manager who will be compensated on the profitability of his or her business, he said. General managers also will be responsible for product marketing, and Red Hat's Michael Chen, who is returning to the U.S. from China after a three-year stint building Red Hat's business there, is now vice president of corporate marketing, Szulik said. This story was updated on September 25, 2007
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Red Hat (nasdaq: RHAT - news - people ) reported strong fiscal third-quarter earnings but revenue missed forecasts. In Wednesday after-hours trading, shares of Red Hat were down $1.00, or 6.6%, to $14.07.
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Royal Dutch Shell Plc (RDSa.L) posted a  2.6 percent rise in underlying profits on Thursday, beating  analysts' forecasts, thanks to higher production and strong oil  prices.
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Oracle reported second-quarter 2005 earnings that beat analyst expectations today, thanks to new software revenue and continued gains from license updates and product support.
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Red Hat Inc. , a provider of  Linux open-source software, on Tuesday reported lower  second-quarter net income and cut its full-year cash flow  forecast, citing the high costs of integrating acquisitions.
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Hewlett-Packard Co.  on Tuesday posted a higher quarterly profit, helped by strong performances in its printer and personal computing businesses.
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The data storage vendor said second-quarter profit rose to $334.4 million as it recorded double-digit sales gains at its biggest businesses.
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Royal Dutch Shell Plc posted a 2.6 percent rise in underlying quarterly profits on Thursday, beating analysts' forecasts, thanks to higher production and strong oil prices.
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Oracle Corp. reported second-quarter 2005 earnings that beat analyst expectations on Monday, thanks to new software revenue and continued gains from license updates and product support.
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Sun Microsystems Inc.'s fiscal second-quarter profit nearly doubled to edge past Wall Street's estimates, reflecting the server and software maker's cost-cutting efforts and maneuvers to shore up demand amid fierce competition, the company reported Thursday.
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SAN FRANCISCO (CBS.MW) -- Red Hat reported a 2005 third-quarter profit Wednesday of $10.8 million as the Linux and open-source software developer&#39;s important subscription revenue nearly doubled over the year-ago period.
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Economic worries notwithstanding, the server market continued to grow at a healthy clip in the second quarter, according to research firm Gartner.
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Hewlett-Packard Co., the world&#39;s No. 2 personal-computer maker, said fourth-quarter profit rose 27 percent, exceeding its forecast, as sales of servers rebounded and PC revenue set a record.
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Microsoft said its fiscal second-quarter profit topped analystsâ expectations and climbed 79 percent, buoyed by rising sales of Windows-based personal computers.
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The online retailer announced Tuesday that its second-quarter net income increased more than threefold, with revenue up 35 percent.
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Red Hat (NOVL:Nasdaq - news - research) got its second upgrade in two week Tuesday, and promptly leaped northward. In recent trading, shares of the Linux Vendor were up $1.42, or 10.6%, to $14.84 in heavy volume.
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Red Hat&#39;s Enterprise Linux operating-system and software subscription sales soared over the past three months, leading the company to strong revenue growth and profits for its fiscal 2005 second quarter.