Open source software maker Red Hat Inc.'s financial results during the third-quarter of the current fiscal year definitely brought some smiles to the faces of company executives. The net income of the software outfit increased by about 47 percent - primarily driven by rising subscription figures.
It is highly likely, however, that the smiles on the faces of company leaders did not last too long as Red Hat's shares dropped following the discovery of its revenue forecast for the current quarter fell short of the estimates made by Wall Street.
Red Hat announced net earnings of the company during Q3 were $38.2 million, meaning each share was priced at 19 cents. The figure was indeed remarkably high in comparison to where it stood during the same quarter in the previous fiscal.
In the third quarter of the last fiscal year, the net net income of the company was $26 million, which meant 13 cents per share.
"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," said Jim Whitehurst, President and Chief Executive Officer of Red Hat, in a statement, Fox Business reports.