Feeds

Red Hat revenues rise but not enough for Wall Street

Q4 figures show growth everywhere, but not quite enough

Top 5 reasons to deploy VMware with Tegile

Red Hat is growing like a weed, and thinks that in a few years open source cloud computing could be worth more to it than the entire Linux market.

The open source firm reported revenues of $348m on Wednesday for its fiscal Q4 2013, up 17 per cent year over year.

Though the earnings saw big increases year-over-year, they were slightly below Wall Street's expectations of revenues of $349.4m, causing a 7 per cent slump in the share price.

Profits came in at $43m, compared to the previous quarter's underweight $35m. All told, the company made $201m in net income and $1.33bn in revenues for the year.

"We will continue to increase the scale and operational efficiencies of RHEL, JBOSS and RHEV," Red Hat chief Jim Whitehurst said on an earnings call discussing the results.

Growth came from increased adoption of data center-focused technologies from Red Hat along with enthusiasm for its JBOSS middleware stack.

"We continued to see momentum with large deals in Q4, closing a record number of deals in excess of $5m and $10m," Whitehurst said in a canned quote. "New customer additions coupled with renewing and up-selling our existing customer base enabled us to exceed the billion dollar milestone in both subscription revenue and deferred revenues for the first time."

But that's not all, folks – the company thinks open source cloud control freak OpenStack could wind up making it a ton of money, though it's going to take several years.

"Until those things go into production there just won't be big dollars," Whitehurst said on an earnings call discussing the results. "But until you put a horizon out over four or five years it could be much, much larger than the Linux market."

Red Hat is previewing a version of OpenStack for enterprise customers at the moment, and plans to eventually release a commercial version, allowing the company to apply the same tactics to OpenStack that it so successfully applied to Linux.

"Big cheques don't start coming till things go into production," he said. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.