Home

简体中文
简体中文
搜索
Log in / Register
网站

Red Hat Reports Fourth Quarter and Fiscal Year 2011 Results

Fourth quarter revenue of $245 million, up 25% year-over-yearFourth quarter subscription revenue of $209 million, up 24% year-over-year.Fourth quarter GAAP EPS of $0.17, up 42% year-over-year; non-GAAP EPS of $0.26, up 37% year-over-year.Fourth quarter o

北卡罗来纳州罗利 -

Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced financial results for its fiscal fourth quarter and fiscal year ended February 28, 2011.

Total revenue for the quarter was $244.8 million, an increase of 25% from the year ago quarter. Subscription revenue for the quarter was $209.3 million, up 24% year-over-year. For the full year, total revenue was $909.3 million, an increase of 22% over the prior year, and subscription revenue was $773.4 million, up 21% year-over-year.

"With record bookings and billings in the fourth quarter, we are on a run rate to become the first pure-play open source company to achieve a billion dollars in revenues next fiscal year, a milestone achievement for Red Hat and the open source community," stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. "We believe the strong demand we experienced was largely driven by customers who are modernizing their data centers and preparing their infrastructure for cloud computing. The comprehensive portfolio that Red Hat has developed with platform, virtualization and middleware products provides enterprise customers with a foundation to deploy the next generation infrastructure."

GAAP operating income for the fourth quarter and the full fiscal year 2011 was $39.4 million and $145.7 million, respectively. GAAP operating margin was 16.1% in the fourth quarter and 16.0% for the full year. After adjusting for stock compensation, amortization expenses, and in the prior year, the charge for a litigation settlement as detailed in the tables below, non-GAAP operating income for the quarter was $61.0 million, or a 24.9% operating margin, and full year non-GAAP operating income was $225.2 million. Full year non-GAAP operating margin was 24.8%, representing an increase of 110 basis points from the prior year.

GAAP net income for the fourth quarter was $33.5 million, or $0.17 per diluted share, compared with $26.0 million, or $0.13 per diluted share, for the prior quarter and $23.4 million, or $0.12 per diluted share, in the year ago quarter. Non-GAAP adjusted net income for the fourth quarter was $51.4 million, or $0.26 per diluted share, after adjusting for stock compensation and amortization expenses as detailed in the tables below. This compares to non-GAAP adjusted net income of $39.1 million, or $0.20 per diluted share in the prior quarter and $36.5 million, or $0.19 per diluted share in the year ago quarter.

For the full year, GAAP net income was $107.3 million or $0.55 per diluted share, compared with $87.3 million or $0.45 per diluted share in the prior year. After adjusting for stock compensation, amortization expenses, and in the prior year, the charge for a litigation settlement, as detailed in the tables below, non-GAAP adjusted net income for the year was $162.8 million or $0.83 per diluted share, compared to $138.1 million and $0.71 per diluted share for the fiscal year ended February 28, 2010.

Fourth quarter GAAP and non-GAAP net income benefited by approximately $0.02/share as a result of the retroactive reenactment in December 2010, of the research tax credit into US tax law. This, together with other tax benefits, including additional US foreign tax credits, reduced the fourth quarter fiscal 2011 effective tax rate for both GAAP and non-GAAP to 17%. The resulting full year effective tax rate for both GAAP and non-GAAP for fiscal 2011 is 30%.

GAAP operating cash flow totaled $95.0 million for the fourth quarter and $290.7 million for the full year. At year end, the company's total deferred revenue balance was $772.3 million, an increase of 20% on a year-over-year basis and 13% sequentially. Cash and investments at February 28, 2011 totaled $1.2 billion after repurchasing approximately $11 million, or approximately 250,000 shares, of common stock in the quarter. For the full fiscal year, Red Hat repurchased approximately $90 million, or 2.9 million shares, of common stock.

"Our fourth quarter results were strong and capped off a year of accelerated billings growth. Broad-based, global demand for our products and services, coupled with strong execution by our associates, resulted in over 30% year-over-year growth in billings this quarter; our fastest billings growth in 12 quarters," stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. "This year we focused on growth with aggressive hiring for sales and engineering, launched major product releases and invested in technologies focused on cloud computing. These investments produced greater than 20% growth in revenues and non-GAAP operating income for both the quarter and the year. At the same time, we increased non-GAAP operating margins by 110 basis points and improved cash flow. It was a good year."

Additional information on Red Hat's reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial tables below. A live webcast of Red Hat's results will begin at 5:00 pm ET today and can be accessed by the general public at Red Hat's investor relations website at http://investors.redhat.com. A replay of the webcast will be available shortly after the live event has ended.

About Red Hat, Inc.

Red Hat, the world's leading provider of open source solutions and a component of the S&P 500, is headquartered in Raleigh, NC with over 65 offices spanning the globe. CIOs ranked Red Hat as one of the top vendors delivering value in Enterprise Software for seven consecutive years in the CIO Insight Magazine Vendor Value survey. Red Hat provides high-quality, affordable technology with its operating system platform, Red Hat Enterprise Linux, together with virtualization, applications, management and Services Oriented Architecture (SOA) solutions, including Red Hat Enterprise Virtualization and JBoss Enterprise Middleware. Red Hat also offers support, training and consulting services to its customers worldwide. Learn more: 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, uncertainty and adverse results in litigation and related settlements, the integration of acquisitions and the ability to market successfully acquired technologies and products; the ability of the Company to effectively compete; 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 conditions, and governmental and public policy changes. 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 the press release.

Red Hat and JBoss are trademarks of Red Hat, Inc., registered in the U.S. and other countries. Linux® is the registered trademark of Linus Torvalds in the U.S. and other countries

 
RED HAT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands - except per share amounts)
 
   Three Months Ended  Twelve Months Ended
   February 28,  February 28,  February 28,  February 28,
   2011  2010  2011  2010
Revenue:            
             
Subscriptions  $209,303  $169,158  $773,404  $638,654
Training and services  35,493  26,710  135,873  109,582
             
             
Total subscription, training and services revenue  244,796  195,868  909,277  748,236
             
Cost of revenue:            
             
Subscriptions  14,742  11,393  52,997  43,426
Training and services  26,862  17,945  97,290  70,419
             
Total cost of subscription, training and services revenue  41,604  29,338  150,287  113,845
             
Total gross profit  203,192  166,530  758,990  634,391
             
Operating expense:            
Sales and marketing  88,273  70,462  327,408  272,705
Research and development  45,150  38,293  171,253  148,360
General and administrative  30,359  29,816  114,653  104,227
Litigation Settlement  -  -  -  8,750
             
Total operating expense  163,782  138,571  613,314  534,042
             
Income from operations  39,410  27,959  145,676  100,349
Interest income  1,697  2,220  6,743  10,381
Other income (expense), net  (866)  4,329  1,275  10,772
             
             
Income before provision for income taxes  40,241  34,508  153,694  121,502
Provision for income taxes  6,707  11,120  46,416  34,249
             
Net income  $33,534  $23,388  $107,278  $87,253
             
Net income-diluted  $33,534  $23,388  $107,278  $87,253
             
Net income per share:            
Basic  $0.17  $0.12  $0.56  $0.46
Diluted  $0.17  $0.12  $0.55  $0.45
             
Weighted average shares outstanding:            
Basic  192,996  187,911  190,294  187,845
Diluted  197,878  193,822  196,353  193,546

 

 
RED HAT, INC.
CONSOLIDATED BALANCE SHEETS
 
(In thousands)
 
ASSETS
   February 28,  February 28,
   2011  2010 (1)
   (Unaudited)   
Current assets:      
Cash and cash equivalents  $642,630  $388,118
Investments in debt and equity securities  217,970  372,656
Accounts receivable, net  184,741  139,436
Deferred tax assets, net  75,720  57,951
Prepaid expenses  62,364  44,116
Other current assets  1,133  842
       
Total current assets  1,184,558  1,003,119
       
Property and equipment, net  75,558  71,708
Goodwill  463,673  438,749
Identifiable intangibles, net  109,932  108,213
Investments in debt securities  331,791  209,411
Other assets, net  33,810  39,672
       
Total assets  $2,199,322  $1,870,872
       
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:      
Accounts payable  $16,285  $16,483
Accrued expenses  90,229  68,334
Deferred revenue  572,637  480,572
Other current obligations  650  878
       

Total current liabilities

  679,801  566,267
       
Deferred lease credits  5,215  4,184
Long term deferred revenue  199,617  165,288
Other long term obligations  23,990  24,081
Stockholders' equity:      
Common stock  22  22
Additional paid-in capital  1,610,238  1,444,848
Retained earnings  245,050  137,772
Treasury stock, at cost  (562,792)  (472,646)
Accumulated other comprehensive (loss) income  (1,819)  1,056
       
Total stockholders' equity  1,290,699  1,111,052
       
Total liabilities and stockholders' equity  $2,199,322  $1,870,872
       
(1) Derived from audited financial statements

 

 
RED HAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
 
   Three Months Ended  Twelve Months Ended
   February 28,  February 28,  February 28,  February 28,
   2011  2010  2011  2010
             
Cash flows from operating activities:            
Net income  $33,534  $23,388  $107,278  $87,253

Adjustments to reconcile net income to net cash provided by operating activities:

            
Depreciation and amortization  12,757  12,014  47,997  45,861
Share-based compensation expense  16,408  14,042  60,597  48,288
Deferred income taxes  4,151  5,570  33,848  20,636
Excess tax benefits from share-based payment arrangements  (10,292)  (8,289)  (42,291)  (35,569)
Gain on sale of available-for-sale equity securities  (903)  (4,409)  (3,746)  (12,656)
Other  716  1,453  1,505  1,248
Changes in operating assets and liabilities net of effects of acquisitions:            
Accounts receivable  (30,481)  (6,159)  (41,512)  (7,290)
Prepaid expenses  (7,863)  (5,810)  (17,220)  (630)
Accounts payable  (3,043)  (375)  (381)  6,569
Accrued expenses  5,320  (1,414)  29,915  15,423
Deferred revenue  73,540  46,662  112,724  82,625
Other  1,157  1,220  2,034  3,491
             
Net cash provided by operating activities  95,001  77,893  290,748  255,249
             
Cash flows from investing activities:            
Purchase of available-for-sale debt securities  (216,327)  (132,630)  (751,420)  (666,890)
Proceeds from sales and maturities of available-for-sale debt securities  165,472  113,321  770,860  412,514
Proceeds from sales of available-for-sale equity securities  939  4,681  3,938  13,053
Acquisitions of businesses, net of cash acquired  -  -  (31,381)  -
Net purchase of strategic equity investments  -  (400)  -  (1,768)
Purchase of developed technologies and other intangible assets  (1,667)  (1,775)  (14,093)  (4,692)
Purchase of property and equipment  (7,588)  (7,103)  (32,759)  (28,420)
             
Net cash used in investing activities  (59,171)  (23,906)  (54,855)  (276,203)
             
Cash flows from financing activities:            
Excess tax benefits from share-based payment arrangements  10,292  8,289  42,291  35,569
Proceeds from exercise of common stock options  4,090  39,758  84,443  103,332
Purchase of treasury stock  (10,791)  (90,147)  (90,146)  (236,393)
Payments related to net settlement of employee share-based compensation awards  (3,162)  (2,801)  (26,250)  (11,855)
Payments on other borrowings  (16)  -  (876)  (900)
Proceeds from other borrowings  -  -  318  -
             
Net cash provided by (used in) financing activities  413  (44,901)  9,780  (110,247)
             
Effect of foreign currency exchange rates on cash and cash equivalents  11,473  (10,677)  8,839  3,771
Net increase (decrease) in cash and cash equivalents  47,716  (1,591)  254,512  (127,430)
Cash and cash equivalents at beginning of the period  594,914  389,709  388,118  515,548
             
Cash and cash equivalents at end of period  $642,630  $388,118  $642,630  $388,118

 

 
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS
(Unaudited)
(In thousands - except per share amounts)
 
 
Non cash share-based compensation expense included in Consolidated Statements of Operations:
 
   Three Months Ended  Twelve Months Ended
   February 28,  February 28,  February 28,  February 28,
   2011  2010  2011  2010
             
Cost of revenue  $1,884  $1,155  $6,053  $3,630
Sales and marketing  5,502  4,166  18,971  14,041
Research and development  4,244  4,026  15,639  13,614
General and administration  4,778  4,695  19,934  17,003
Total share-based compensation expense  $16,408  $14,042  $60,597  $48,288
             
             
Amortization of intangible assets expense included in Consolidated Statements of Operations:
             
   Three Months Ended  Twelve Months Ended
   February 28,  February 28,  February 28,  February 28,
   2011  2010  2011  2010
             
Cost of revenue  $979  $724  $3,274  $3,662
Sales and marketing  2,085  2,148  8,322  9,056
Research and development  1,250  925  4,025  3,702
General and administration  846  816  3,340  3,228
Total amortization of intangible assets expense  $5,160  $4,613  $18,961  $19,648
             
             
Class action litigation settlement expense included in Consolidated Statements of Operations:
             
   Three Months Ended  Twelve Months Ended
   February 28,  February 28,  February 28,  February 28,
   2011  2010  2011  2010
             
Litigation settlement  -  -  -  $8,750
             
             
   Three Months Ended  Twelve Months Ended
   February 28,  February 28,  February 28,  February 28,
   2011  2010  2011  2010
             
GAAP net income  $33,534  $23,388  $107,278  $87,253
             
Provision for income taxes  6,707  11,120  46,416  34,249
             
GAAP income before provision for income taxes  $40,241  $34,508  $153,694  $121,502
             
Add: Non-cash share-based compensation expense  16,408  14,042  60,597  48,288
Add: Amortization of intangible assets  5,160  4,613  18,961  19,648
Add: Litigation settlement  -  -  -  8,750
             
Non-GAAP adjusted income before provision for income taxes  $61,809  $53,163  $233,252  $198,188
             
Provision for income taxes (1)  10,437  16,624  70,442  60,065
             
Non-GAAP adjusted net income  $51,372  $36,539  $162,810  $138,123
             
Non-GAAP adjusted net income-diluted  $51,372  $36,539  $162,810  $138,123
             
Non-GAAP adjusted net income per share:            
Basic  $0.27  $0.19  $0.86  $0.74
Diluted  $0.26  $0.19  $0.83  $0.71
             
             
(1) Provision for income taxes:            
Non-GAAP adjusted net income before income tax provision  $61,809  $53,163  $233,252  $198,188
Estimated annual effective tax rate  16.9%  31.3%  30.2%  34.0%
Non-GAAP provision for income taxes before discrete tax benefit  $10,437  $16,624  $70,442  $67,384
Discrete tax benefit  -  -  -  7,319
Provision for income taxes on Non-GAAP adjusted net income  $10,437  $16,624  $70,442  $60,065

 

 
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS
(Unaudited)
(In thousands - except per share amounts)
 
 
Reconciliation of GAAP results to non-GAAP adjusted results
             
   Three Months Ended  Twelve Months Ended
   February 28,  February 28,  February 28,  February 28,
   2011  2010  2011  2010
             
GAAP gross profit  $203,192  $166,530  $758,990  $634,391
             
Add: Non-cash share-based compensation expense  1,884  1,155  6,053  3,630
Add: Amortization of intangible assets  979  724  3,274  3,662
             
Non-GAAP gross profit  $206,055  $168,409  $768,317  $641,683
             
Non-GAAP gross margin  84.2%  86.0%  84.5%  85.8%
             
             
   Three Months Ended  Twelve Months Ended
   February 28,  February 28,  February 28,  February 28,
   2011  2010  2011  2010
             
GAAP operating expenses  $163,782  $138,571  $613,314  $534,042
             
Deduct: Non-cash share-based compensation expense  (14,524)  (12,887)  (54,544)  (44,658)
Deduct: Amortization of intangible assets  (4,181)  (3,889)  (15,687)  (15,986)
Deduct: Litigation settlement  -  -  -  (8,750)
             
Non-GAAP adjusted operating expenses  $145,077  $121,795  $543,083  $464,648
             
             
   Three Months Ended  Twelve Months Ended
   February 28,  February 28,  February 28,  February 28,
   2011  2010  2011  2010
             
GAAP operating income  $39,410  $27,959  $145,676  $100,349
             
Add: Non-cash share-based compensation expense  16,408  14,042  60,597  48,288
Add: Amortization of intangible assets  5,160  4,613  18,961  19,648
Add: Litigation settlement  -  -  -  8,750
             
Non-GAAP adjusted operating income  $60,978  $46,614  $225,234  $177,035
             
Non-GAAP adjusted operating margin  24.9%  23.8%  24.8%  23.7%

Red Hat, Inc.
Media Contact:
Kara Schiltz, 919-301-3002
kschiltz@redhat.com
or
Investor Relations:
Tom McCallum, 919-754-4630
tmccallum@redhat.com

  • 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.