Red Hat Profit Rises On Higher Linux Sales
Red Hat , the largest publicly held company focused on selling Linux software, reported a 64% increase in quarterly profit and revenue ahead of Wall Street expectations, sending shares up 5%.
Fiscal second-quarter net income rose to $18.2 million, or 9 cents a share, from $11.0 million, or 5 cents a share, a year earlier, on strong sales of an upgraded version of the Linux operating system introduced in March.
Revenue during the quarter ended Aug. 31 increased 28% to $127.3 million and topped the average Wall Street target of $125 million, according to Reuters Estimates.
Sales of Linux software offset weakness in Red Hat's JBoss middleware product, relieving investors who feared the results would miss Wall Street targets, said Trip Chowdhry, an analyst with Global Equities Research.
Excluding some items, profit was 17 cents, in line with the average view of analysts, according to Reuters Estimates.