Red Hat, Inc. (Nasdaq: RHAT), the leading provider of open source solutions for Internet infrastructure, today reported revenue of $13.1 million for the fourth quarter ended February 29, 2000, a 39% increase over revenue of $9.4 million for the fourth quarter last year. Revenue for the fourth quarter was 24% higher than third quarter revenue of $10.5 million. Results for the quarter and the year are consolidated for the acquisitions of Cygnus Solutions and Hell's Kitchen Systems, Inc., both of which were completed in January, 2000.
Adjusting for non-cash charges and one-time acquisition expenses, the Company reported a net loss for the fourth quarter of fiscal 2000 of $5.6 million, or $0.04 per share. Before these adjustments, the net loss was $24.6 million, or $0.17 per share, compared with a net loss of $1.2 million, or $0.03 per share, for the fourth quarter of fiscal 1999.
Revenue for the year ended February 29, 2000 was $42.4 million, a 28% increase compared to revenue of $33.0 million for fiscal 1999. Adjusting for non-cash charges and one-time acquisition expenses, the Company reported a net loss for fiscal 2000 of $19.2 million, or $0.19 per share. Before these adjustments, the net loss for the year was $39.9 million, or $0.40 per share, compared with a net loss of $5.8 million, or $0.12 per share, for fiscal 1999.
Commenting on the results, Matthew Szulik, president and CEO of Red Hat, Inc., said, "Demand for Red Hat products and services is strong in ISPs, Web hosting companies and manufacturers of Internet devices. Post the consolidation of our recent acquisitions, Red Hat is in position to accelerate revenue and margin growth on a global basis."
Highlights of the fourth quarter include:
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.
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.