Red Hat sweetens Q3 with Sistina buy
Red Hat continued to chug along in its third quarter, upping both revenue and subscriptions. In addition, the company announced plans to acquire Sistina Software - an upstart in the storage software market.
The Linux maker churned out $33.1 million in revenue for the quarter, which marks a 36 percent year-on-year increase. Red Hat reported net income of $4.1 million versus income of $214,000 in the same quarter a year ago. These results mark a sustained drive on Red Hat's part to stay profitable but also point to the fairly small business the company has carved out.
Red Hat saw a spike in its subscription rate, reaching a total of 33,000 for the quarter.
The company has not been shy about its focus on enterprise Linux over desktop software, and the purchase of Sistina should help push the data center efforts along. Sistina is fairly well know for its GFS file system that can run across a number of Linux servers. The company has tuned this software for Oracle's 9i RAC product and billed the combination as a way for customers to replace their Unix SMPs with Linux clusters. Sistina also makes a volume manager.
Red Hat expects to close the deal by early January at a purchase price of $31 million. Red Hat will issues shares of its common stock for the transaction, which hinges on standard approvals. ®