Red Hat, the largest provider of Linux software, posted its 2009 second quarter earnings, beating Wall Street's estimates.
Revenue was $164.4 million, up 29 percent from the same quarter a year ago. Subscription revenue was $135.7 million, up 24% from last year. It reported a profit of $21.1 million, or 10 cents per share, up from $18.2 million, or 9 cents, last year. Analysts had been expecting revenue of $163.6 million.
Operating cash flow totaled $54.3 million, compared to $49.2 million from the year ago quarter and $63.4 million from the prior quarter. At quarter end, the company’s total deferred revenue balance was $496.9 million, an increase of 32% on a year-over-year basis and 1% sequentially. Total cash, cash equivalents and investments as of August 31, 2008 were $1.4 billion.
President and CEO Jim Whitehurst said the company has stayed focused on its expansion into virtualization and is working toward "a comprehensive virtualization solution from server to desktop which will enable our customers to deploy any application, anywhere, anytime.” Earlier this month, Red Hat said it will acquire Qumranet, a virtualization software platform provider, further positioning itself as a competitor in the virtualization market.
Shares of Red Hat were down about 3 percent to $17.34 in after-hours trading.