Apex Community Forums - View Single Post - Linux News: Red Hat Scores A 46% Rise In Revenue

Lokie · 01-July-05, 10:29 AM

Red Hat reported on Wednesday that first-quarter revenue climbed 46 percent as more companies and governments opened their wallets for its open-source tools and support services.

Quote:

Revenue for the quarter, which ended May 31, was $60.8 million, representing record sales for the company. Revenue from enterprise subscriptions, or contracts with big corporate and government clients, increased 63 percent in the quarter and now makes up 80 percent of the company's revenue. Wall Street has been eager to see the company grow that business.

Red Hat, based in Raleigh, N.C., grew profits too. First-quarter net income climbed to $12.4 million, or 7 cents per share, up from $10.9 million, or 6 cents per share, a year ago. Revenue and profits for the quarter were within the range expected by most analysts.

Red Hat Chief Executive and Chairman Matthew Szulik called the financial performance the company's best to date and promised continued growth based on plans to expand the company's offerings and geographic reach and to tap growing global demand for open-source systems.