Red Hot: Red Hat Sales, Earnings Surge in Latest Quarter
Posted December 22, 2005 7:12 a.m. EST
RALEIGH — RALEIGH - Red Hat beat Wall Street earnings expectations by 2 cents, at 12 cents a share as it reported a surge in sales for its fiscal third quarter.
Red Hat (Nasdaq:RHAT) reported quarterly revenues of $73.1 million, up 11 percent from the previous quarter and a 44 percent spike from one year ago.
The Linux software developer and services provider reported net income of $23.3 million, a 39 percent jump from the previous quarter. Earnings increased 3 cents from the last quarter and were double the earnings reported for the same quarter in 2004.
The news sent Red Hat shares up 4 percent in after-hours trading, according to Investor's Business Daily.
Subscription revenue jumped to $60.2 million, an 11 percent increase from the previous quarter and 54 percent higher than in 2004.
"Our third quarter results reflect return on investments in people and infrastructure made in prior periods," said Charlie Peters, chief financial officer of Red Hat, in a statement. "Solid growth across key metrics indicates not only strength in the demand for our solutions but also continuing improvements in the day-to-day operations of our business."