Red Hat Approaching $1 Billion Annual Revenue

Red Hat's recently released fourth quarter revenue report indicates that the company will soon become the first open source focused software maker to reach $1 billion in annual revenue.

According to ZD Net, the company posted a fourth-quarter net income of $33.5 million or 17 cents per share.

The open source software vendor reported Non-GAAP earnings of $244.8 million, which is 25 per cent more than last year.

For the entire year ending February 28th, the company posted a net income of $107.3m, or 55 cents a share and revenue of $909.3 million, an increase of 22 per cent from last year.

Jim Whitehurst, Chief Executive of Red Hat, said in a statement that the company's annual revenue was expected to grow to $1 billion judging by the current state of things. He also revealed that the company's major revenue streams come from data center upgrades, virtualization software and JBoss middleware.

“People are renewing old infrastructure that they couldn’t afford to replace before. You did have a bit of pent-up need,” Whitehurst said.

For the first quarter of 2012, Red Hat has predicted sales between $252 million and $255 million while the revenue for the full fiscal year will be between $1.05 billion and $1.07 billion.