Feeds

Red Hat Q3's 'validate' Linux subscriptions

Big year-on-year gains

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Red Hat yesterday said its sale rose 55 per cent during its third quarter of fiscal 2005, reaching $50.9m from the year-ago total, $32.8m. Q3's sales were ten per cent higher than Q2's.

The bulk of Red Hat's sales came through its Linux OS subscription services, which yielded $39.2m in the three months to 30 November 2004 - up 80 per cent on Q3 FY2004 and 12 per cent over the previous quarter.

Enterprise subscription gross margins remained strong at 91 per cent; overall gross margins were 80 per cent. No wonder, then, that Red Hat's CFO, Charlie Peters, felt able to say: "We believe that our results reflect continued improvements and validation of our subscription model."

Red Hat said it increased its deferred revenue tally to $121.4m, up 22 per cent on the previous quarter and 170 per cent higher than Q3 FY2004.

The company's net income for the period came to $10.8m (six cents a share), up 155 per cent on the $4.3m it reported this time last year, but was eight per cent down on Q2's $11.8m (six cents a share). However, last quarter's net income was boosted through a $0.6m tax gain. Q2's income before tax totalled $11.2m; Q3's figure was $11.3m.

Red Hat generated $29.7m in cash during the quarter, taking its cash and investments tally to $979m. ®

Related stories

Enterprise surge boosts Red Hat's Q2
Sun must acquire Red Hat or Novell - analyst
Dell turns on too pricey Red Hat
Novell makes profit in Q4
Sun stares down Red Hat with Solaris 10
Red Hat hates money, which makes it better than Sun
Red Hat opens losing propaganda offensive against Sun
Red Hat ups security for Enterprise Linux 3

Internet Security Threat Report 2014

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.