Red Hat revenues up 112 per cent in Q3

Red Hat revenues up 112 per cent in Q3

Linux vendor Red Hat announced its third-quarter financial results last week, listing revenues of $US22.4 million for the period ending November 30, an increase of 112 per cent from a year ago.

The US-based company reported an adjusted net loss of $899,532, or 1 cent per share, down from $5.4 million in losses (4 cents per share) a year ago.

Net losses before adjustments totalled $21.4 million, or 13 cents per share, compared with a net loss of $6.3 million, or 5 cents per share, a year ago. The adjustments were made for amortisation of goodwill and intangibles, sales and marketing, research and development and other costs.

In an interview, Red Hat president and CEO Matthew Szulik said his company "clearly is on the doorstep of profitability", which is expected sometime next year. "The positive aspect of this is that customers are responding" by adopting open-source technologies and Red Hat products.

One of the keys have been customers who have consolidated their Unix technologies to Red Hat Linux, along with increased demand from device manufacturers, he said.

Bill Claybrook, an analyst with the Aberdeen Group, said the financial report included good signs for the company.

"There's absolutely no doubt in my mind that Red Hat is going to be successful," Claybrook said. The company has several attributes, including the largest brand recognition in the Linux community, a good development and support staff, and money in the bank, he said.

"Linux is just barely [getting] going as far as I'm concerned," Claybrook said.

During the quarter, the company launched the latest version of its operating system, Red Hat Linux 7, which includes enhanced security, improved high-end Intel processor compatibility and increased 3D support.

Also in the quarter, Compaq announced the availability of its ProLiant servers pre-installed with Red Hat Linux, and the company acquired C2Net Software, which developed the Apache-based Stronghold secure Web server.

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