Red Hat moves Into the black
What tech recession?
Red Hat has moved into the black for the first time since going public - a significant psychological milestone for the company.
The company reported a profit of $3.7 million with revenue up by $4m, almost all attributable to subscription services, from the previous quarter. As Red Hat was within a whisker of profitability in its last quarter - reporting a loss of $600,000 - that isn't a great surprise. The company managed to cut marketing and general expenses in the period, while increasing spending on R&D. Cost savings of $6m bring the company into the black.
Red Hat will also take cheer from the fact that it appears to have weathered the worst of the tech recession, with revenue down a mere 4 per cent from the last quarter of 2000.
Unfortunately two typos in Red Hat's own financial statement make reading the figures more difficult than it should be. In two sections of the detailed release, both columns - containing different numbers - are headed 'May 31, 2001', where they should read 'February 28, 2001'. We think... ®