Feeds

Red Hat shares soar on impressive Q2

Analysts pull out their pom poms

The Power of One Infographic

Shares of Red Hat jumped today as the software maker revealed that strong sales pushed second quarter revenue significantly higher.

Red Hat enjoyed a healthy three-month run, pulling in revenue of $65.7m. That total marks a 42 per cent year-over-year rise. In addition, Red Hat's second quarter net income reached $16.7m - a 42 per cent hike from the same period last year. The results inspired investors and analysts to reward the Linux maker with praise.

In the after-hours markets, Red Hat's shares jumped more than 10 per cent to $18.29, at the time of this report.

Similarly, financial analysts on a conference call to discuss the Red Hat results fought to heap encouraging words on management.

"Congratulations, everybody," said an analyst from Thomas Weisel Partners.

"Congratulations on the quarter," added a Credit Suisse First Boston guru.

Folks from UBS and Robert Baird offered their compliments as well. "Wow" and "Very good execution here" said others.

The performance helped demonstrate the strength of backbone holding up the financial analyst community, and it made all of us on the call feel good.

Management played off the good vibrations to tout increasing interest in its server products and services and momentum with partners such as Oracle and HP. Fair enough, since subscription revenue increased 56 per cent year-over-year in the second quarter to $54.3m.

Red Hat certainly has the look and feel of a healthy company these days. Still, its quarterly revenue totals must be set against how much the likes of IBM, HP and Dell make selling Linux servers. While Linux enjoys the strongest growth rate of any server OS, most of that money travels to the hardware makers, leaving Red Hat and Novell to fight over scraps. ®

Seven Steps to Software Security

More from The Register

next story
Whoah! How many Google Play apps want to read your texts?
Google's app permissions far too lax – security firm survey
Chrome browser has been DRAINING PC batteries for YEARS
Google is only now fixing ancient, energy-sapping bug
Do YOU work at Microsoft? Um. Are you SURE about that?
Nokia and marketing types first to get the bullet, says report
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
OpenWRT gets native IPv6 slurping in major refresh
Also faster init and a new packages system
Google shows off new Chrome OS look
Athena springs full-grown from Chromium project's head
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
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.