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Red Hat posts improved revenue and profit numbers

Red Hat announced a 20 per cent boost in quarterly revenue over last year's Q1, having raked in some $209.1 million in its fiscal quarter that ended May 31, 2010.

The open source outfit said net profit stood at $24.1 million for the quarter or $0.12 per diluted share, compared with $18.5 million, or $0.10 per diluted share, a year ago.

Subscription revenue for the quarter was $179.1 million, up 20 per cent year-over-year, the firm bragged.

Red Hat said healthy subscription renewals, large deals, and progress in persuading customers to migrate from free, 'community' software to Red Hat enterprise offerings had all helped.

GAAP operating income for the first quarter was $34.2 million, or a 16.4 per cent operating margin.

The firm said its decent performance had allowed it to repurchase over $74 million of common shares, which will please the shareholders.

"Our business was strong with healthy subscription renewals, large deals, continued progress in our "free to paid" initiative and strong growth in our services business. We continued to invest in our growth, in both engineering and sales, and it is paying off," trumpeted Charlie Peters, executive vice president and CFO of Red Hat.

"Despite significant foreign currency volatility, both revenue and deferred revenue experienced double digit growth in US dollars year-over-year," he said.