Red Hat sees profits drop

Linux distributor Red Hat saw quarterly and full year profits tumble last week, despite impressive sales.

  • E-Mail
By  Administrator Published  April 12, 2007

Linux distributor Red Hat saw quarterly and full year profits tumble last week, despite impressive sales.

The enterprise software vendor's net income for its fiscal fourth quarter and fiscal year 2007, ending February 28, both dropped around 25% year-on-year to US$20.5million and US$59.9million respectably, due to significant increases in operating expenses.

The profits slump came in spite of increases in revenues of around 40% year-on-year in Q4 and for the full year.

Of the US$111.1million in sales Red Hat made during Q4, US$95.9million came from software support subscriptions, up 44% year-on-year, while training and services revenue grew around 26%.

During a conference call with analysts to discuss the results, Red Hat chairman Matthew Szulik said the company has signed up 10,000 customers in Q4, bringing the total for the full year to over 42,000.

Szulik also said 98 of the firm's top 100 customers renewed contracts in 2007.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code