Feeds

Red Hat lowers losses

Taps HP For enterprise market

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

ComputerWire: IT Industry Intelligence

Red Hat Inc, the Linux software and services firm, yesterday reported that it reduced its loss in its first fiscal quarter and increased its revenue sequentially, but saw a decreased top line year-on-year as it reduced its focus on embedded systems in favor of the enterprise market.

For the three months to May 31, the Raleigh, North Carolina-based company recorded a net loss of $4.3m, compared to a loss of $42.3m in the fourth quarter and a loss of $27.6m a year ago, on revenue that was up 5% sequentially and down 9% annually at $19.5m.

The company announced at the same time that it has expanding its Advanced Server reseller deal with Hewlett-Packard Co, one of its key channels into the enterprise market. HP will be the first company to sell Itanium 2-based servers running Linux, Red Hat said. The deal also extends to all HP ProLiant servers and blade servers.

Red Hat has been increasing its focus on the high-end enterprise market, with its Advanced Server as the cornerstone of the strategy. In the first quarter, the company managed to increase its enterprise subscriptions sequentially 6% to $9.6m, down 1% year-on-year. Enterprise services were up about 10% and 44% at $7.8m.

The company's embedded systems business has been suffering as a result. Subscription revenue from embedded Linux was down 35% at $1m, flat sequentially. Last year, Red Hat announced its strategy of focusing on Unix-to-Linux migration opportunities in the high-end market, and restructured its embedded division as a result.

For the current second fiscal quarter, Red Hat now sees revenue in the $21.8m to $22.4m range, with enterprise revenue making up 90-92% of revenues and subscriptions making up 53% of enterprise revenue. The firm expects operating expenses of $16m to $16.4m and a net loss at the GAAP level of $3.3m to $3.8m.

© ComputerWire

Internet Security Threat Report 2014

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.