News: Increasing demand for the company’s open-source software and cloud infrastructure helps it report strong results for fiscal year 2016.
Linux software maker Red Hat has become the first $2bn open-source firm after reporting strong financial results for its fourth quarter and fiscal year ending 29 February 2016.
Total revenue for its fourth quarter was $544m, an increase of 17% year-over-year. Total fiscal year 2016 revenue was $2.05bn, up 15%.
Net income was $53m, or $0.29 per diluted share, in Q4, compared to $48m, or $0.26 per diluted share, a year earlier.
Subscription revenue for the quarter was $480m, up 18% year-over-year. For the full fiscal year, subscription revenue was $1.80bn, an increase of 16%.
Subscription revenue from infrastructure-related offerings increased 15% to $391m for the quarter.
Subscription revenue from application development-related and other emerging technologies offerings grew 38% to $89m in Q4.
The company’s performance also drove a record backlog of $2.13bn, up 15% year-over-year, offering meaningful visibility into future revenue.
For the first quarter, Red Hat expects revenue to be in the range of $558m to $566m.
Red Hat president and CEO Jim Whitehurst said: "Customers are demanding technologies that modernise the development, deployment and life-cycle management of applications across hybrid cloud environments.
"Many are relying on Red Hat to provide both the infrastructure and the application development platforms to run their enterprise applications consistently and reliably across physical, virtual, private cloud and public cloud environments."
Last month, Red Hat has expanded its alliance with Google to deliver Red Hat Gluster Storage on Google Cloud Platform.
The deployment of Red Hat Gluster Storage on Google Cloud Platform allows customers to implement the same storage technology on-premises and on Google Cloud Platform. Users can take their existing applications with them as they move into the cloud.
Earlier this month, Red Hat collaborated with Eurotech to power more secure and scalable Internet-of-Things implementations.
The company recently announced the general availability of Red Hat Enterprise Virtualization 3.6, offering improved performance, scale, and security for high-intensity Linux workloads.