Red Hat revenues rocket

James Stirling News
20 Dec, 2011

The open source firm thanks cloud for helping boost revenues to $290 million.

Red Hat today unveiled its latest results, revealing a 23 per cent year-on-year rise in third quarter revenues.

The total reached $290 million (£185 million) for the three month period – ending 30 November 2011 – with the bulk made from subscription revenues of $246.5 million, also up by 24 per cent compared to the same period last year.

"Red Hat continues to benefit from enterprise customers that are seeking to leverage their IT infrastructure to drive significant productivity gains and agility across their organisations,” said Jim Whitehurst, president and chief executive (CEO) of Red Hat.

Whitehurst specifically gave thanks to the integration of Gluster – an open source storage firm it acquired back in October – and its first storage product launch for the company’s success in the quarter.

“We will continue to expand our storage solutions in cloud computing and big data storage, and believe that Red Hat is well positioned to deliver disruptive solutions in the large and growing storage market,” he added.

Other impressive figures from the earnings call included $53.6 million of operating income, $38.2 million net income and $96.6 million of operating cash flow, all up significantly when compared to the same quarter in 2010.

“We continued to deliver consistent performance across our business which resulted in strong growth in our key financial metrics,” said Charlie Peters, executive vice president and chief financial officer (CFO) at Red Hat. “At the same time, we continued to invest in strategic growth initiatives.”

"When compared to the first three quarters of last fiscal year, our year-to-date revenue, non-GAAP operating income and operating cash flow are up 26 per cent, 35 per cent and 35 per cent, respectively."

Red Hat spent a lot of 2011 building up its reputation in the cloud, from offering training for private cloud through to revamping its Fedora operating system to benefit cloud users. The results of this quarter seem to be showing it was a good move.

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