Feeds

Red Hat eyes embedded arena for growth

Revenues up, loss down

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Leading Linux distributor Red Hat yesterday posted a much-narrowed second quarter loss, coming in just ahead of Wall Street expectations.

Red Hat lost $1.9 million (one cent a share) in the three months to 31 August, compared to $4.3 million (six cents a share) for the same period last year. First Call's analyst average had pegged Red Hat's lost at two cents a share.

Of course, that's the headline figure - Red Hat actually lost $15.7 million (ten cents a share), the difference coming from one-off acquisition-related charges (it bought embedded Linux specialist WireSpeed Communications back in June).

Indeed, Red Hat drew specific attention to its successes in the embedded arena, which is rapidly becoming flavour of the month in the world of Linux companies, replacing corporate services in the great 'this is way we'll make money' mantra.

Chipzilla, Samsung, Eastman Kodak, Hitachi, Ericsson, Cirrus Logic, Cradle Technologies and others all paid Red Hat between $100,000 and $1 million to help them get to grips with embedded Linux during the quarter, Red Hat CTO Tim Buckley noted during an analyst conference call.

He later told CNet that he will be detailing Red Hat's embedded strategy in two weeks' time, though broadly it will be based on selling service contracts and software upgrades, both on a contract basis rather than through royalties.

Red Hat's services business brought in some big-name customers, including support buyers Motorola, Fidelity Investments, Cisco and WorldCom, and training clients Qwest, Oracle, Cisco, Intel, IBM and Symantec.

Red Hat also noted it sold engineering support to AMD, presumably part of Chimpzilla's OS strategy for its upcoming 64-bit CPU Sledgehammer.

All of these contracts, plus others and Red Hat's Linux distribution business combined to generate revenues of $18.5 million for the quarter, up 76 per cent on last year's $10.5 million and 15 per cent higher than last quarter's $16 million. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Preview redux: Microsoft ships new Windows 10 build with 7,000 changes
Latest bleeding-edge bits borrow Action Center from Windows Phone
Google opens Inbox – email for people too thick to handle email
Print this article out and give it to someone tech-y if you get stuck
Microsoft promises Windows 10 will mean two-factor auth for all
Sneak peek at security features Redmond's baking into new OS
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Entity Framework goes 'code first' as Microsoft pulls visual design tool
Visual Studio database diagramming's out the window
Google+ goes TITSUP. But WHO knew? How long? Anyone ... Hello ...
Wobbly Gmail, Contacts, Calendar on the other hand ...
DEATH by PowerPoint: Microsoft warns of 0-day attack hidden in slides
Might put out patch in update, might chuck it out sooner
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.