Red Hat Profit Soars

Red Hat Inc., which makes software for the Linux operating system, said late Wednesday its profit soared in the latest quarter as revenue jumped 55 percent, though revenue came in short of Wall Street’s expectations.Raleigh-based Red Hat reported net income of $10.8 million, or 6 cents a share, for the fiscal 2005 third quarter ended Nov. 30.

News source: eWeek The latest earnings results met the average estimate of analysts surveyed by Thomson First Call.

Total subscription and services revenue grew to $50.9 million from $32.9 million, slightly below Wall Street’s estimate if $51.8 million.

Subscription revenue climbed 80 percent to $39.2 million from $21.8 million.

For the first nine months of fiscal 2005, net income rose to $33.6 million, or 17 cents a share, from the previous year’s $8.9 million, or 5 cents a share.

Total subscription and services revenue climbed 58 percent to $139 million from $88 million in the nine-month period. Subscription revenue nearly doubled to $104.7 million from $56.7 million.

Shares of Red Hat finished at $15.07 Wednesday, down 6 cents, or 0.4 percent, on the Nasdaq Stock Market. The latest results were reported after the close of trading. In after-hours trading, the stock was down 99 cents, or 6.5 percent, at $14.08.


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