Red Hat boasts strong Q2

Red Hat continues to ride the growth of Linux on the server, as second quarter revenue for the company surged.

Red Hat reported revenue of $28.8 million for its second fiscal quarter of 2004, which marks a 36 percent year-on-year increase. The Linux maker also posted $3.3 million in net income versus a $1.9 million loss in the same period a year ago.

Red Hat managed to put $10.4 million in cash into its coffers, which is a whopping 89 percent sequential increase.

Annual subscriptions for Red Hat Linux increased 10 percent when compared to the first quarter to a total of 26,000. Subscription revenue also rose 21 percent compared to Q1 and 123 percent compared to Q2 2003.

In its most recent numbers, IDC noted that Linux server revenue rose 40 percent in the second quarter. Shipments also surged 42 percent, and Red Hat appears to be benefitting from this success.

Shares of Red Hat closed down slightly at $8.40 per share but then jumped 6 percent in the after-hours markets, at the time of this report. ®