In the second quarter of fiscal 2003, Red Hat achieved revenue of $21.2 million, a sequential increase of 9% compared to $19.5 million in the first quarter of fiscal 2003.
On a pro-forma basis, for the second quarter of fiscal 2003 the company reported a net loss of $471,000, or break-even per share, and on a GAAP basis reported a net loss of $1.7 million, or $0.01 per share. This compares to an adjusted net loss of $829,000, or break-even per share, in the prior quarter, and a GAAP net loss of $4.6 million, or $0.03 per share in the prior quarter.
Enterprise revenues jumped by 13%, to $19.6 million, compared to $17.4 million in the prior quarter, and by 40% compared to the same quarter a year ago. In its first full quarter of release, Red Hat Advanced Server has gained support of all the leading hardware and software providers, and has quickly become established as the Linux platform for the Enterprise. Gross margins remained strong at 67% on Enterprise revenues and 64% on total revenues during the second quarter of fiscal 2003.
The company generated positive cash flows of $2 million in the second quarter of fiscal 2003, including $582,000 in positive cash flows from operations, to a total cash and investments balance of $288.5 million at August 31, 2002.
In future quarters, Red Hat intends to only report GAAP results.
"Strong operating performance, including revenue growth and positive cash flows, delivers evidence that Linux in the Enterprise is for real, and Red Hat is positioned to lead the market", stated Kevin Thompson, Executive Vice President and Chief Financial Officer.
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
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About Red Hat
Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.
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