Who says you can't make money from Linux? Not Red Hat!
In its 2013 second quarter, Red Hat saw total revenue for the quarter of $374 million. That was an increase of 16 percent in US dollars from 2012's second quarter. Subscription revenue for the quarter was $327 million, up 17 percent in U.S. dollars year-over-year.
“We are a market leader for new innovations based on open source technologies that are driving the transformation of the data center toward an open, hybrid cloud infrastructure. ” stated Jim Whitehurst, Red Hat's President and CEO during the earnings conference call.
Besides its flagship product Red Hat Enterprise Linux (RHEL), Whitehurst also cited Red Hat's recent introduction of its infrastructure-as-a-service (IaaS) cloud, RHEL OpenStack Platform as leading to a still brighter future.
Whitehurst added that "The combination of OpenStack with our platform-as-a-service (PaaS), open software-defined storage and cloud management solutions create a compelling road map for our customers in the move to cloud computing.”
Generally accepted accounting principles (GAAP) operating income for Red Hat's second quarter was $56 million, up 11 percent year-over-year. After adjusting for stock compensation, amortization of intangible assets and facility exit expenses, non-GAAP operating income for the second quarter was $94 million, up 19 percent year-over-year. For the second quarter, GAAP operating margin was 14.8 percent and non-GAAP operating margin was 25.2 percent.
Net income for the quarter was $41 million, or $0.21 per diluted share, compared with $35 million, or $0.18 per diluted share, in the year ago quarter. After adjusting for stock compensation, amortization of intangible assets and facility exit expenses, non-GAAP net income for the quarter was $68 million, or $0.35 per diluted share, as compared to $55 million, or $0.28 per diluted share, in the year ago quarter.
“We delivered mid-to-high teens growth across several financial metrics including revenue, non-GAAP operating income and operating cash flow,” stated Charlie Peters, Red Hat's Executive Vice President and CFO in a statement. “These results were driven in particular by strong subscription revenue growth, which was up 17 percent in US dollars."
The bottom line is that Red Hat is doing very well indeed.