Red Hat, Inc. (Nasdaq: RHAT), the leader in open source Internet infrastructure solutions, today reported revenue of $16.0 million for the first quarter ended May 31, 2000, a 95% increase over revenue of $8.2 million for the first quarter last year, and 22% higher than fourth quarter 1999 revenue of $13.1 million. Gross margins increased to 54.0% for the quarter, a 6.6 percentage point improvement over the prior quarter.
Adjusting for non-cash, merger, acquisition and other expenses, the Company reported a net loss for the first quarter of fiscal 2001 of $2.5 million, or $0.02 per share, compared to an adjusted net loss for the first quarter of fiscal 2000 of $3.8 million, or $0.08 per share. On a reported basis, the net loss was $14.9 million, or $0.10 per share, compared with a net loss of $4.1 million, or $0.08 per share, for the first quarter of fiscal 2000.
Commenting on the results, Matthew Szulik, president and CEO of Red Hat, Inc., said, "Q1 performance represents continued execution against our plan to double revenue and become profitable in calendar 2001 while leveraging our acquisitions to enter new markets and create new revenue streams."
Highlights for the first quarter include:
- Unveiled the redhat.com Marketplace, a single, comprehensive Web destination to learn about and purchase products for open source Internet computing initiatives. Participating vendors include Dell, Compaq, IBM, Oracle, Rackspace.com and Zonetrader.com.
- Launched "What Can Red Hat Do for Me," a service which delivers users a made-to-order report featuring the information, products and services that are right for that customer's needs.
- Launched "Success Stories," which details the business needs, deployment and cost savings of Red Hat Linux for Internet Infrastructure solutions.
- Launched the Red Hat E-Learning Curriculum, a collaboration with DigitalThink, a leader in e-learning solutions, to extend Red Hat Linux training and certification to the Web.
- Extended enterprise-level support to businesses of all sizes with a new per-server support program, a subscription-based, 24x7 annual service that has the flexibility to add systems at increasingly lower costs per system as the number of servers or desktops grows.
- Extended the relationship with IBM. IBM is pre-loading Red Hat Linux 6.2 on its Netfinity servers for which Red Hat is providing level-three support.
- Additionally, IBM is offering the Red Hat Certified Engineer program at IBM training centers around the world.
- Expanded the partnership with Dell by collaborating on the development of the Dell PowerApp.web appliance server, which is powered by the Red Hat Linux 6.2 operating system. Red Hat is also providing support to Dell customers for the PowerApp.web appliance server.
- Expanded the relationship with Compaq to provide bundled and pre-loaded Red Hat Linux 6.2 on Compaq servers, AlphaStations and select Deskpro PC models.
- Released pre-production tools and software for the forthcoming Intel Itanium processor platform targeting high-end servers and workstations. Launched eCos 1.3, the latest version of Red Hat's Open Source, configurable, application-specific operating system for embedded systems. eCos provides manufacturers of post-PC devices with the expertise to bring networking applications to embedded devices.
- Distributing the Red Hat Embedded DevKit and support package, providing software developers with everything needed to create embedded Linux applications on a wide spectrum of pervasive computing platforms.
- Introduced the Enterprise Channel Partner Program for the largest resellers and network and systems integrators that service some of the world's most successful enterprise companies.
- Formed Red Hat Ventures, a venture funding and strategic business relationships division to accelerate the breadth of tools, services and technologies available to Red Hat customers.
RED HAT, INC.
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