Open source software vendor Red Hat posted record second quarter financial results, with its net income climbing 69 percent.
The company, which sells support service for its open source business software, reported earnings of $40 million, or 20 cents per share in the second quarter of 2011, up from $23.7 million or 12 cents per share in the same quarter last year.
Red Hat also reported second quarter revenue of $281 million, a rise of 28 percent from the second quarter last year. Most of the revenue came from its subscription services which generated $238 million, a rise of 28 percent.
If the company continues its financial performance, it will become the world’s first billion dollar open source software vendor.
“The combination of strong sales execution and customer demand led to second quarter revenue that was above our guidance and represented our fourth straight quarter of accelerating revenue growth,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat.
“We continued to win and strengthen relationships with enterprise customers who partner with Red Hat to reduce costs while modernizing their IT infrastructure to enable applications to run on bare metal, virtualization and in the cloud. Based on the strong first half results, we believe Red Hat remains well positioned to finish fiscal 2012 as the first billion dollar open source software vendor”, he added.