Red Hat delivers solid third quarter results

Summary:Red Hat delivered strong third quarter results as it continued to ride along with the server and data center upgrade cycle.

Red Hat on Tuesday delivered strong third quarter results as it continued to ride along with the server and data center upgrade cycle.

The company reported fiscal third quarter earnings of $26 million, or 13 cents a share, on revenue of $235.6 million, up 21 percent from a year ago. Non-GAAP earnings were 20 cents a share. Wall Street was looking for earnings of 20 cents a share on revenue of $227.3 million.

Analysts were expecting a run-of-the-mill quarter and that's pretty much what they got relative to expectations.

Among the key figures:

  • Subscription revenue for the quarter was $198.8 million, up from $164.4 million a year ago.
  • Training and services revenue was $36.7 million, up from $29.9 million a year ago.
  • Research and development spending was $43 million, up from $71 million a year ago.
  • Red Hat ended the quarter with $594.9 million in cash.

Topics: Enterprise Software, Banking, Linux, Open Source

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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