Red Hat credits cloud for third-quarter growth

Red Hat credits cloud for third-quarter growth

Summary: Enterprise software specialist Red Hat saw an overall revenue increase during the quarter ending 30 November, with subscription revenue performing well

TOPICS: Tech Industry

Red Hat has enjoyed a positive financial third quarter due to interest in cloud computing and virtualisation, the company announced in a statement on Tuesday.

The company's total revenue for the period was $235.6m (£152.6m), a 21-percent increase in comparison to third quarter 2009 results.

Read this

Why success could stymie cloud's giants

The massive expansion of the major cloud providers is hampering their ability to innovate. But that stagnation will allow creativity to blossom elsewhere, says Lori MacVittie

Read more+

A 21 percent year-on-year increase in subscription earnings contributed to the increase in revenues, the company said.

Total subscription revenues amounted to $198.8m for the fiscal third quarter. Non-GAAP net income also rose in a year-on-year comparison with 2009, up from $33.5m to $39.1m, or $0.20 per diluted share.

Red Hat said its acquisition of cloud applications specialists Makara — announced on 30 November — will accelerate the development of its platform-as-a-service plans as part of its Cloud Foundations portfolio.

"We are well positioned at the confluence of several hot areas of IT; open source, virtualisation and cloud computing. In addition, we are executing consistently and we are making focused investments in growth initiatives," Charlie Peters, executive vice president and chief financial officer of Red Hat, said in a statement.

Get the latest technology news and analysis, blogs and reviews delivered directly to your inbox with ZDNet UK's newsletters.

Topic: Tech Industry

Ben Woods

About Ben Woods

With several years' experience covering everything in the world of telecoms and mobility, Ben's your man if it involves a smartphone, tablet, laptop, or any other piece of tech small enough to carry around with you.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.


Log in or register to start the discussion