Red Hat Q2 strong; On track for $1 billion in annual revenue

Red Hat CEO Jim Whitehurst says the company "continued to win and strengthen relationships with enterprise customers."

Red Hat delivered a strong second quarter as revenue growth continued to accelerate. The company added that it was on track to finish its fiscal year as the first open source software company to reach $1 billion in annual revenue.

The Raleigh, N.C.-based company continues to land data center deals. Meanwhile, its JBoss middleware is gaining momentum.

Red Hat reported second quarter earnings of $40 million, or 20 cents a share, on revenue of $281.3 million, up 28 percent from a year ago. Non-GAAP earnings were 29 cents a share. Both earnings and non-GAAP net income was boosted by a tax benefit of a penny a share.

Wall Street was expecting Red Hat to report earnings of 25 cents a share on revenue of $271.2 million.

Overall, Red Hat delivered a strong quarter. Red Hat CEO Jim Whitehurst said in a statement that the company "continued to win and strengthen relationships with enterprise customers."

By the numbers:

  • Deferred revenue at the end of the quarter was $813.2 million, up 25 percent from a year ago.
  • Red Hat had cash and equivalents of $1.3 billion.
  • Subscription revenue was $238.3 million in the quarter.

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