Feeds

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

Sights set on OpenStack

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.