Red Hat profits up in Q1

Open source solutions proving popular in difficult economic circumstances says Red Hat

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Red Hat profits up in Q1 Red Hat's subscription revenue was up 14% in Q1 from the same period last year.
By  Mark Sutton Published  June 28, 2009

Red Hat appears to be proving the attraction of open source solutions in tight economic times, posting a 7% rise in profits for its first fiscal quarter.

The open source solutions provider posted net income of $18.5 million, up from $17.3 million from the same quarter last year. Red Hat also saw total revenues up 11%, to reach $174.4 million.

Jim Whitehurst, president and CEO of Red Hat said: “We are pleased to report better than expected revenue and EPS results in Q1. Red Hat’s growth is driven in part by our ability to help enterprise customers save money in a challenging IT spending environment. Our open source solutions drive new capabilities, efficiencies and functionality into the mission critical infrastructure of our customers.”

Subscription revenue for the quarter was up by 14% to $148.8 million, while services and support revenue was flat at $25.6 million against $25.9 million in the same quarter last year.

Charlie Peters, executive vice president and CFO of Red Hat commented: “While we remain focused on managing discretionary costs and improving efficiencies, we also continue to invest in growth opportunities in middleware, virtualization and cloud computing. These efforts combined with solid top line growth contributed to non-GAAP operating income growth of l9% year-over-year and healthy cash flow. In the quarter, we repurchased $47 million of common stock while strengthening our balance sheet with a 5% sequential increase in cash and investments. On a year-over-year basis, we have reduced our diluted shares outstanding by approximately 11%.”

3428 days ago
May

I agree that promotion, PR and events is needed to any company to show and emphasis it's image + success stories in the region

3431 days ago
Ramzi

It's so weird with a such company has different kind of strategies from sales, marketing, operation ....etc. For in example if you look for the way US doing buz; Already have a proper channels, OEM partners and technology partners. In this region till now none of hardware vendors knows RH faces neither they've done any join events to bring the value to their clients and RH can have access to those clients. In addition, Opertional wise for the last 5 years their focus plan of reducing expneses to the max and that effect in the quility of the resources & problem solving. in the other hand RH US they first objective to focus in the image, supporting their channels to keep a strong word of mouth that helps them to have strong access to the ecosystem cleints. Last part, Scucess stories i ddin't see any success stories except 1 client in airline business and guess what it was only product satisfaction not managment neither operation. Thank you for posting my comment. Editor's reply: I think you'll find that Red Hat is fairly active, along with local distributors like Savvytek or Opennet, but perhaps they need to do more to promote their activities. http://www.itp.net/news/558923-intj-hosts-open-source-workshop?ln=en http://www.itp.net/news/559359-opennet-to-offer-smb-support-for-open-source-solutions?ln=en

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