Red Hat smashes expectations with solid Q1 earnings

Summary:Red Hat turns a revenue of $314.7 million, an increase of 19 percent from the same time last year.

Wall Street analysts predicted Red Hat would continue to turn out another positive quarter, and the open source giant did just that on Wednesday afternoon.

Red Hat reported a net income of $37.5 million, or 19 cents a share (statement). Non-GAAP earnings were 30 cents a share on a revenue of $314.7 million, an increase of 19 percent from the same time last year.

Wall Street was expecting Red Hat to report first quarter earnings of 19 cents a share on revenue of $310.9 million.

CEO Jim Whitehurst commented in prepared remarks:

Our first quarter results represented a strong start to our fiscal 2013. Red Hat’s compelling value proposition and innovative, open source technologies continued to drive our financial success and market share gains.

CFO Charlie Peters added in the report that Red Hat is "continuing to invest in important growth initiatives in markets such as virtualization, cloud computing and storage.”

Earlier on Wednesday, Red Hat introduced JBoss Data Grid 6, an in-memory data grid solution, and JBoss Enterprise Application Platform 6 with a new cloud-ready architecture.

The Enterprise Application Platform is designed as a solution for simpifying and streamlining building enterprise applications and moving them to the cloud, while JBoss Data Grid 6 focuses on scaling application development for better big data management. Both solutions are available now.

By the numbers:

  • Subscription revenue for the quarter was $272.6 million, up 21 percent year-over-year.
  • Non-GAAP net income for the quarter was $58.0 million.
  • Operating cash flow was $124.4 million compared to $90.2 million in Q1 2011.
  • Red Hat repurchased approximately $30 million, or approximately 550,000 shares, of common stock during the first quarter.

Related:

Topics: Linux, Open Source

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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