Red Hat SummitIn the fourth quarter of fiscal 2003, Red Hat achieved revenue of $25.9 million, a sequential increase of 7% compared to $24.3 million in the third quarter of fiscal 2003, and a year-over-year increase of 40%.
For the fourth quarter of fiscal 2003, the company was break-even on a net income and per share basis, which includes $900,000 of foreign currency loss. This compares to a net income of $214,000, or break-even per share, in the prior quarter, and a net loss of $42.3 million, or $0.25 per share in the same quarter a year ago.
The company generated $3.0 million in positive cash flows from operations during the fourth quarter, which represents its third consecutive quarter of positive cash flows from operations. The company ended the year with a cash balance of $292 million, an increase of $5.4 million as compared to the balance at the end of the prior fiscal year.
In the fourth quarter of fiscal 2003, the company increased its deferred revenue balance to $17.8 million, an increase of $7.6 million, or 75% as compared to the third quarter of fiscal 2003.
Highlights for the fourth quarter include:
- Fourth quarter sales of subscriptions for Red Hat Enterprise Linux AS (formerly Advanced Server) increased by 4,500 to 16,500 subscriptions, an increase of 38% as compared to the third quarter of fiscal 2003.
- Total subscription revenues, including revenues from retail subscriptions, grew 10% sequentially and 43% year-over-year.
- Total Enterprise revenues, including technologies and services, grew 26% sequentially and 73% year-over-year.
- Subscription revenues from Enterprise Technologies grew 54% sequentially and 103% year-over-year.
- Blended gross margins improved to 68%, while gross margins of Enterprise subscription technologies, including retail revenues, remained strong at 81%.
- Red Hat shipped 5,000 units of Red Hat Enterprise Linux WS in its first full quarter of availability.
- The company's operating results improved by $800,000 compared to the third quarter of fiscal 2003.
For the fiscal year ended on February 28, 2003, the company reported revenues of $90.9 million, an increase of 15% as compared to fiscal 2002 revenues of $78.9 million. The company reported a net loss of $6.4 million for fiscal 2003, or $0.04 per share, compared to a net loss of $140.2 million, or $0.83 per share, for fiscal 2002.
"Through strong performance of all our enterprise technologies, Red Hat was able to achieve steady, consistent growth in fiscal 2003?, stated Kevin Thompson, Executive Vice President and Chief Financial Officer. "In a difficult environment, Red Hat delivered four consecutive quarters of revenue growth, increasing positive cash flows, and decreasing operating losses".
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.
- Forward-Looking Statements
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission’s website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.
