Red Hat Posts Strong Q2
Open source software company Red Hat has reported a 16% increase in net income to $21.13m for the second quarter 2009, compared to $18.15m in the year-ago quarter, on revenue up 29% to $164.38m. The growth was attributed to strong subscription business and demand for its products and services.
During the quarter, operating income grew 20% to $21.4m, while diluted EPS grew 11% to $0.10. Operating cash flow was $54.3m compared to $49.2m in the year-ago quarter.
The North Carolina-based company said subscription revenue grew 24% to $135.7m, while training and services revenue grew 58% to $28.67m. For the first half of 2009, it reported an 11.7% increase in net income to $38.42m compared to $34.37m in the year-ago quarter, on revenue up 30% to $321.01m.
Jim Whitehurst, president and chief executive at Red Hat, said: “Our focused execution has delivered another quarter of solid growth and financial results. Also in Q2, we continued to execute on our virtualization strategy with our award winning RHEL platform as the solid, certified foundation. Our goal is for Red Hat to deliver a comprehensive virtualization solution from server to desktop which will enable our customers to deploy any application, anywhere, anytime.”
Looking ahead, for the third quarter, the company expects revenue between $169m and $171m and EPS between 16 cents and 17 cents. The company expects its recent acquisition of virtual computing applications provider Qumranet for $107m will cut its second half EPS by 5 cents to 6 cents.