Feeds

Red Hat milks corporate Linux sales for strong Q1

Subscriptions look solid

  • alert
  • submit to reddit

The Power of One Infographic

A bustling enterprise Linux business carried Red Hat to improved first quarter results. The software maker reported revenue of $60.8m in the period - a solid 46 per cent jump over $41.8m in the same quarter one year ago. Red Had enjoyed a slight increase in services and embedded OS revenue, while subscriptions to its corporate Linux product jumped significantly. The improved overall business helped Red Hat post net income of $12.4m - a rise over the $10.9m last year.

Red Hat's CFO Charlie Peters spared investors undue enthusiasm when describing the results.

"Our results for the first quarter represent a solid start to the fiscal year," he said. "We continue to experience strong customer demand."

Red Hat's flagship enterprise OS pulled in $48.7m during the quarter, which compares to $30m last year. Embedded revenue increased to $497,000 from $225,000. Services revenue for the enterprise OS hit $11.4m, which compares to $10.5m one year earlier.

Red Hat, however, saw a dramatic fall in embedded services revenue from $710,000 down to $157,000 in the first quarter.

Management warned that a stronger dollar could put pressure on future quarters. Red Hat expects second quarter sales to come in between $64m and $65m. ®

Related stories

Novell launches GroupWise 7
IBM gets 10 years under Sun
Microsoft is profiting from punishment - rivals

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.