Red Hat results boosted by datacentre upgrades

The open-source software company beat expectations as it benefited from firms upgrading their IT infrastructure
Written by Larry Dignan, Contributor on

Red Hat's first-quarter earnings for 2011 were strong as the company continues to ride datacentre upgrades and sell more of its middleware.

On Tuesday the open-source software company reported earnings of $32.5m (£20.3m), or 17 cents a share, on revenue of $264.7m, up 27 percent from a year ago. Non-GAAP earnings were 24 cents a share. Wall Street analysts were expecting earnings of 22 cents a share on revenue of $253.6m.

In recent quarters, Red Hat has delivered strong results. Companies are spending on IT infrastructure as they shift to virtualised environments. In addition, Linux continues to gain at the expense of Unix in the datacentre.

For more on this ZDNet UK-selected story, see Red Hat delivers strong first quarter, rides data center upgrades on ZDNet.com.

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