RALEIGH, N.C. - —
In the third quarter of fiscal 2003, Red Hat achieved revenue of $24.3 million, a sequential increase of 14% compared to $21.2 million in the second quarter of fiscal 2003, and a year-over-year increase of 21%.
For the third quarter of fiscal 2003 the company reported a net income of $305,000, or break-even per share. This compares to a net loss of $2.0 million, or $0.01 per share, in the prior quarter, and a net loss of $15.1 million, or $0.09 per share in the same quarter a year ago.
Other highlights for the quarter include:
- Enterprise revenues, which account for 93% of Red Hat's total revenues, grew 15% to $22.5 million.
- Enterprise subscription revenues jumped 29% and generated gross margins of 82%.
- Blended gross margins remained strong improving to 66%, while Enterprise gross margins grew to a record 68%.
- Cash flow from operations jumped 74% to $1.0 million.
- Sales of Advanced Server increased to 12,000 subscriptions, a 50% increase compared to the prior quarter.
- Days Sales Outstanding decreased to a record 46 days.
"By continuing to deliver strong operating performance, Red Hat continues to show solid execution of its business strategy", stated Kevin Thompson, Executive Vice President and Chief Financial Officer. "Accelerating growth of our enterprise subscription revenues and positive operating cash flows are evidence of Red Hat's scalable business model".
See the table.
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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