Feeds

Red Hat revenues up – losses way up

Two-for-one stock split coming too

  • alert
  • submit to reddit

High performance access to file storage

Leading Linux distributor Red Hat today announced a massively widening loss alongside rather narrower growth in revenue for its third quarter of fiscal 2000, its second quarter since it became a publicly owned company.

For the three months ending 30 November, Red Hat recorded revenues of $5.4, up 23 per cent on the $4.4 million sales it posted last quarter, and 64 per cent on the $3.3m it recorded for the same period last year. Back then, Red Hat lost $100,000. This time, its loss reached $3.6m - a whopping 3600 per cent increase.

Naturally, company president Matthew Szulik focused on the revenue gains: "This quarter revenue growth was due to a number of factors: an increase in global demand for Red Hat Linux; an increase in the need for services from corporate accounts; an increase in the contribution of Red Hat's global offices; and an increase in the demand for the content and customers of redhat.com."

Indeed, Red Hat's cut of the advertising it runs on its sites brought in $440,6678 during the quarter, up from zero during Q3 1999. Service revenue shot up 450 per cent over the 12 months. Sales of Red Hat software increased just 14 per cent. Clearly Red Hat's focus on services is paying off, even though it's costing the company plenty to build up that side of the business - during the quarter it opened its Asia-Pacific office and opened five Red Hat training centres (two in California, three in Europe).

The company also announced today a two-for-one stock split, due to take place on 27 December and which will increase the number of outstanding shares to around 137.6 million. ®

Related Story

Red Hat to buy Be?

High performance access to file storage

More from The Register

next story
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.