Feeds

Red Hat's pockets bulging on strong Linux, JBoss sales

Sights set on OpenStack

Gartner critical capabilities for enterprise endpoint backup

Enterprise Linux vendor Red Hat posted strong financial results for the third quarter of its fiscal 2014 on Thursday, with earnings that beat both analysts' estimates and the company's own earlier guidance.

Revenues for the quarter ending on November 30 were $397m, up 15 per cent from the same period a year ago.

In the customary conference call with financial analysts, Red Hat president and CEO Jim Whitehurst attributed the gains to strong demand both for the company's flagship Red Hat Enterprise Linux (RHEL) product and for its JBoss Middleware suite.

Of the total, $343m or 86.4 per cent of Red Hat's revenue this quarter came from subscriptions, which was up 17 per cent from the year-ago quarter.

Those healthy sales panned out in profits, with the company reporting net income of $52m, an increase of 48.6 per cent from Q3 of its fiscal 2013.

When adjusted for stock-based compensation and amortization, that meant earnings of $0.42 per diluted share, which not only beat the $0.29 per diluted share earnings of the year-ago quarter but also surprised the analysts, who were expecting results closer to $0.35 per share, according to Yahoo! Finance.

During the call, Whitehurst talked up Red Hat's investment in the OpenStack open-source cloud computing platform, which he said offers an alternative to proprietary software for customers who are transitioning their IT to hybrid cloud technologies. Red Hat plans to be "a big player" in OpenStack consulting, he said.

But although Whitehurst said Red Hat plans to continue to invest in OpenStack, he cautioned investors that it would take time for the company to build that part of its business, and that subscription revenues from OpenStack would be "modest" even in the fourth quarter.

Red Hat's overall revenues won't be, however, according to CFO Charlie Peters. During the earnings call, Peters said to expect the open source firm's fourth quarter revenues to match or exceed those of the third quarter, even given traditional seasonal declines.

All of this naturally came as music to the ears of Red Hat's investors, who sent the company's share price up more than 11 per cent in after-hours trading following Thursday's closing bell. ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?