Subscription revenue up 21% on year ago
Red Hat has reported revenues of $194.3m for the third quarter of 2009, an increase of 18% compared to $165.3m for the same period last year. Subscription revenues rose by 21% to $164.4m from $135.4m.
Jim Whitehurst, president and CEO of Red Hat, said: “Our double digit growth in the current economic environment was driven by our compelling value proposition and outstanding service. We also continued to introduce new products, including the November release of RHEV that advances our position in server virtualisation and cloud computing. RHEV provides customers the choice of a high-value, low cost, open management solution that was not previously available in the $2bn virtualisation market.”
For the quarter ended November 30, 2009, gross profit increased to $164.7m from $138.7m, while operating income decreased to $19.8m, including a previously announced charge of $8.8m for a litigation settlement, from 20.9m.
The company has posted a net income of $16.4m for the third quarter of 2009, a decrease compared to $24.3m for the same period last year. Basic earnings per share decreased to $0.09 from $0.13.
Charlie Peters, EVP and CFO of Red Hat, said: “Strong bookings, particularly in North America, led to strong billings and greater than 20% growth in subscription revenue and deferred revenue, as well as further improvement of non-GAAP operating margins. This type of consistent performance, combined with our strong balance sheet, led to our third debt rating upgrade in 20 months by Standard and Poors rating agency.”