ProductsDesktop Server For Scientific Computing For IBM POWER For IBM System z For SAP Business Applications Red Hat Network Satellite ManagementExtended Update Support High Availability High Performance Network Load Balancer Resilient Storage Scalable File System Smart Management Extended Lifecycle SupportDeveloper Studio Portfolio Edition Web Framework Kit Application Platform Web Server Data Grid Portal Platform Red Hat JBoss A-MQ Red Hat JBoss Fuse SOA Platform Business Rules Management System (BRMS) Data Services Platform Messaging JBoss Operations Network JBoss Community or JBoss enterprise
SolutionsApplication development Business process management Enterprise application integration Interoperability Operational efficiency Security VirtualizationSolaris to Red Hat Enterprise Linux Migration overview Migrate from your UNIX platform How to migrate to Red Hat Enterprise Linux Upgrade to the latest Red Hat Enterprise Linux release JBoss Enterprise Middleware Benefits of migrating to Red Hat Enterprise Linux Migration services Start a conversation with Red Hat
TrainingPopular and new courses Red Hat JBoss Administration curriculum Core System Administration curriculum JBoss Middleware Development curriculum Advanced System Administration curriculum Linux Development curriculum Cloud Computing, Virtualization, and Storage curriculum
ConsultingBusiness Process Management Cloud and Virtualization Custom Software Development Enterprise Data and Storage Systems Management Migrations
Red Hat Reports Fiscal Second Quarter Results
RaleighUnited States, September 20, 2004
144,000 subscriptions, 31% sequential growth in operating income, 12% sequential growth in deferred revenue, and $31 million in cash flow from operations highlight a strong quarter
Red Hat, Inc. (Nasdaq:RHAT), the world's leading provider of open source solutions to the enterprise, today announced financial results for the second quarter ended August 31, 2004.
Revenue for the second quarter of fiscal 2005 was $46.3 million, 60% higher than the second quarter of fiscal 2004 and a sequential increase of 11% when compared to $41.8 million in the first quarter of fiscal 2005.
For the second quarter of fiscal 2005, the company reported net income of $11.8 million, or $0.06 per share. This represents an increase of 225% over net income in the same quarter a year ago, and an increase of 8% over net income of $10.9 million, or $0.06 per share, in the prior quarter.
The company generated $30.8 million, or $0.16 per share, in cash flow from operations during the second quarter of fiscal 2005. The company ended the quarter with cash and investments totaling $997.7 million.
In the second quarter of fiscal 2005, the company increased its deferred revenue balance to $99.7 million, a sequential increase of $11 million, or 12%, as compared to the first quarter of fiscal 2005.
Highlights for the second quarter include:
- Sales of subscriptions of Red Hat Enterprise Linux reached 144,000 units, including:
- 115,000 subscriptions to enterprise IT servers, which includes new subscriptions and renewals.
- 29,000 new subscriptions to HPC/hosting marketplace and desktops.
- Operating profit increased to $6.7 million, or 15% of total revenue.
- 10% addition to the workforce as the company expands globally.
"We continue to see strong demand for our offerings, as reflected in our results. The company executed successfully across the global business", stated Charlie Peters, Executive Vice President and Chief Financial Officer.
See Red Hat's earnings tables.
About Red Hat, Inc.
Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com
Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov.
LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. All other names and trademarks are the property of their respective owners.