Feeds

Red Hat stems Red Ink

Almost, nearly, just about breaking even

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

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. ®

The essential guide to IT transformation

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.