Red Hat 2004 Annual Report
In fiscal year 2004:
  • $124 million in revenue, up 38% from last fiscal year
  • More than 9,000 new Red Hat Enterprise Linux customers
  • $61.6 million in cash flow from operations
  • $941 million in cash and investments at year end
  • 31% of revenues generated internationally

Dear Red Hat Shareholder

The Red Hat story is a simple and strong one. We make Linux predictable and consumable for mission critical environments. The core of our business is Red Hat Enterprise Linux, sold by subscription. The subscription model means customers always have the latest software. Here's what it means to Red Hat:

  • More than 160,000 Red Hat Enterprise Linux subscriptions sold during fiscal 2004
  • More than 206,000 cumulative Red Hat Enterprise Linux subscriptions deployed as of February 29, 2004
  • More than 87,000 new Red Hat Enterprise Linux subscriptions sold in the 4th quarter alone
  • 91% enterprise subscription technologies gross margins in Q4
  • 282% growth in deferred revenue in fiscal 2004

Red Hat Enterprise Linux has risen to the challenge of enterprise computing. It's the foundation of a strategy we call the Open Source Architecture. This strategy blends Red Hat Enterprise Linux, Red Hat Network, Red Hat Applications, and Services. It lets our partners build their products around true open standards. As of May 21, 2004:

  • More than 250 ISVs and more than 750 applications certified for Red Hat Enterprise Linux
  • More than 160 hardware server platforms certified on Enterprise Linux 2.1, more than 125 certified on Enterprise Linux 3, with more than 95 hardware server platforms in the process of certification
  • More than 11,000 RHCEs and more than 4,300 RHCTs certified in Red Hat's training programs
  • Continuing close partnerships with Dell, HP, IBM, Intel, and Oracle

Our business model depends on staying true to open source, creating extraordinary value, and providing service worthy of the world's largest companies. Red Hat is delivering on its bold mission: To become the defining technology company of the 21st century.

Thank you for your continued confidence.

Matthew Szulik
Matthew Szulik
Chairman, Chief Executive Officer, and President
Red Hat