Red Hat turns black with revenue jump

By Alun Williams

Posted on 19 Jun 2003 at 16:58

A successful quarter has seen Red Hat, the well-established Linux distro company, declare a profit of $1.5mn. This contrasts with the net loss of $273,000 from the last three months and the $4.6mn from the same period in 2002.

For the quarter ending 31 May, revenues were declared to be $27.2mn. This represents a sales boost of 39 per cent year-on-year and a sequential increase of 5 per cent on the previous three months.

The reason for the revenue jump? As well as increased subscriptions, the company is reaping the benefits of lowered costs.

For the Red Hat Enterprise Linux technologies, subscriptions rose 10 per cent to 23,500, and subscription revenues from its Enterprise Technologies grew 14 per cent. The company also reduced its operating costs by $1.3mn

'Red Hat continues to show strong operating performance, including solid growth in cash flows, deferred revenues, and net income,' declared the Chief Financial Officer Kevin Thompson.

You can read the full financial figures at Web site.

Red Hat went into the black back in December 2002, when the company reported a profit of $304,000 on revenues of $24.3 million. The move into profit was fuelled by big increases in its enterprise revenues, which accounted for 93 per cent of Red Hat's total revenues.

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Red Hat goes into the black