Software // Enterprise Applications
07:33 PM
Connect Directly

Red Hat Net Surges On Growing Linux Subscription Revenue

Subscription revenue was $109.2 million in the second quarter, up 29% from a year ago and 6% over the previous quarter.

Red Hat net income surged as revenue continued to grow year over year in the second quarter ended Aug. 31, according to CFO Charlie Peters.

Revenue totaled $127.3 million, up 28% from the same quarter a year ago and up 7% from the first quarter. Subscription revenue was $109.2 million of the total, up 29% from a year ago and 6% over the previous quarter. The figures show a growing demand for Linux as a subscription service. Deferred revenue, part of which is still-to-be collected subscription commitments, amounted to $377 million, an increase of 33% over the year-ago period.

Net income for the quarter was $18.2 million, up 64% or 9 cents per share, compared with $11 million or 5 cents per share for the same quarter a year ago. The adjusted results were in line with earnings estimates on Wall Street, according to Thomson Financial. Red Hat shares, which had closed Monday at $19, were down slightly to $18.89 by the close of trading Tuesday.

Peters said he projects revenue of $131 million to $133 million in the third quarter of the fiscal year, with earnings of 18 cents per share, according to Reuters.

During the quarter, Red Hat released JBoss Enterprise Application Platform 4.2, its JBoss application server and middleware suite integrated for migrating legacy applications to an open source code operating environment.

It also released the beta version of an integrated set of Eclipse-based open source development tools, and certified its 3,000th application to run on Red Hat Linux.

Red Hat also announced Tuesday the appointment Mark Cook as VP of finance and controller. He was previously Red Hat's treasurer. Paul Argiry replaced Cook as the treasurer, joining Red Hat from the position of senior director of corporate finance at Jabil Circuit.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps – and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of July 17, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.