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Red Hat Does Better than Expected
Red Hat's Pipeline Is Reportedly "Strong" Despite the American Economy Dangling By A Thread
By: Maureen O'Gara
Sep. 30, 2008 01:00 AM
While the American economy dangles by a thread over a lake of molten lava, the American corporation keeps chugging along.
Red Hat says it has no material exposure to the debacle and that September has been no different than the beginning of any other quarter. Its pipeline is reportedly “strong.”
It earned $21.1 million, 10 cents a share, on revenues up 29% year-over-year, 5% sequentially to $164.4 million in its second quarter ended August 31, slightly better than expected.
Subscription revenue for the quarter was $135.7 million, up 24% year-over-year or 4% sequentially and represented 83% of total revenues. Red Hat said all of its top 25 accounts up for renewal during the quarter did and claimed at lot more JBoss is being sold.
Training and service revenues were up 58.4% to $28.7 million.
Expenses were also up 29.1% to $115.5 million.
Deferred revenue was up 32% year-over-year, 1% sequentially at $496.9 million.
Non-GAAP adjusted net income was $43.2 million, or 20 cents a share, after adjusting for stock compensation and taxes.
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.
It’s got $1.4 billion in the bank.
It’s projecting revenues of $169 million-$171 million this quarter and non-GAAP earnings per of 16 cents-17 cents. Its forecast was below consensus of 19 cents on $173 million and for lack of visibility management wouldn’t reiterate its full-year guidance.
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