RALEIGH, N.C. - —
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.
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