Enterprise surge boosts Red Hat's Q2
Beats The Street
Red Hat's enterprise operating system business carried it to a banner second quarter, as revenue surged.
Red Hat pulled in $46.3m during the period - a 60 percent rise over the $29m posted in the same quarter last year. Net income jumped 225 percent year-over-year to $11.8m. This lead to $0.06 earnings per share - a figure that just beat out analysts' estimates.
"We continue to see strong demand for our offerings, as reflected in our results. The company executed successfully across the global business", said Red Hat's CFO Charlie Peters in a very matter-of-fact canned quotation.
Red Hat boosted enterprise software subscriptions to $34m in the second quarter - a strong gain over the $14m reported last year. Retail sales, however, fell from $4m last year to just $561,000. Embedded sales cam in at $423,000 versus $490,000 one year ago.
Red Hat's enterprise services generated $10.5m during this year's second quarter compared to $9m last year.
Red Hat's results left investors unmoved in the after-hours markets. The company's shares fell almost 4 percent to $14.51, at the time of this report. ®
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