Feeds

Red Hat revenue surges in Q1

Not enough for investors

  • alert
  • submit to reddit

Build a business case: developing custom apps

Red Hat made solid strides over the past year, posting a boost in revenue and income for its first quarter.

Red Hat reported total Q1 revenue of $41.6m - a 53 percent rise over the same quarter last year. Net income surged as well, increasing 603 percent to $10.7m. Red Hat managed to pump out $30.1m in cash during the quarter, ending the period with cash and investments totaling $964m.

"Red Hat continued to show consistent execution in the first quarter of fiscal 2005, as evidenced by a strong sequential growth in subscription volumes, gross margins, and operating margins", stated Kevin Thompson, Red Hat's CFO. "Cash flow from operations once again remained strong, representing 72% of total revenues in the quarter".

Red Hat's shares plummeted earlier this week when Thompson surprised investors by saying he would leave the company. The CFO has agreed to stay on until a replacement is found.

Looking back at the first quarter, Red Hat saw operating system subscriptions hit 98,000 - a 13 percent sequential increase.

Investors again sent Red Hat's shares lower on the financial news as they expected higher revenue totals. In the after-hours markets, Red Hat dropped close to 10 percent, at the time of this report, to $22.39. It started the week at $26 per share. ®

Related stories

Microsoft delivers 'the Facts' about Linux
Microsoft delivers 'the Facts' about Linux
Bigmouth McBride turned us off SCO, says investor
Red Hat powers ahead of Novell?

5 things you didn’t know about cloud backup

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
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 quits 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
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
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.