Red Hat Inc., the commercial Linux distributor, has posted imposing financial results for the quarter that ended on 30 November, posting revenue figures that aced Wall Street expectations by a great extent.
The company has announced that its sales for the third quarter of the fiscal 2010 have jumped significantly by around 17.5 percent to a whopping $19.4 million, from $165.3 million a year ago.
However, it has failed to deliver goods in terms of profit figures, as the net income for the company plunged considerably by more than 34 percent, primarily owing to higher expenses that involved a recent legal settlement.
Earnings for the Linux provider were pegged at $16.4 million, or 8 cents per share, down from $24.3 million, or 12 cents per share, as posted by the company for the same period a year ago.
The recently concluded quarter also involved $8.8 million coughed up the company for a legal settlement, which strips out a 3 cents per share from its earnings figures.
If one-time items are excluded, the profits would have been $33.5 million, or 17 cents per share, as against $36.9 million, or 18 cents a share, a year back, according to the company.
In addition, it has also registered gains in deferred revenues that clocked to the tunes of $618.7 million, up from the last year’s same period.
Red Hat is can be considered as a service company rather than merely a Linux-based provider. Like its rival, Novell, it has been able to weave a number of services around its original core and has managed successfully to become a major player in the IT services market.
(The Wall Street Journal)