Feeds

Red Hat stems Red Ink

Almost, nearly, just about breaking even

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Red Hat has almost turned the corner in its quest to turn a profit. The company reported a net loss of $600,000 on revenues of $27 million for the past quarter, up 20 per cent from the previous quarter. And despite a trolley-load of acquisitions, Red Hat's cash pile remains substantial: cash and investments added up to almost $150 million.

Red Hat's balance sheet actually showed an operating loss of $5.2 million. But perhaps most significantly, the balance between what Red Hat calls subscriptions - licence revenue - and its services business has reversed in the past year. Services generated $8.2 million in the quarter and 'subscriptions' $3.5 million. That's a mirror image of a year ago. Although services is a lower margin business, executives pledged to maintain the focus on long-term growth and profitability. The past quarter's loss amounts to break-even per share.

So the Red Hat juggernaut rolls on. By contrast Caldera, the other publicly traded Linux distro, last month reported income of $1 million and a net loss of $9.8 million for its most recent quarter. With Red Hat keeping the spoils of service revenue to itself, rather than leaving it to its channel, it looks to have followed the smarter path. But as the Linux market continues to grow by leaps and bounds - one of the few technology areas that isn't stagnant - it's too early to call. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
French 'terror law' declares WAR on the INTERNET itself, say digi-rights folks
Liberté, Égalité, Fraternité: Two out of three ain't bad
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

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.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.