Red Hat revenue growth driven by subscriptions

Open-source software company Red Hat has reported strong net income and revenue gains for the third quarter of its fiscal year 2012, buoyed by strong subscription revenue.

Share

Open-source software company Red Hat has reported strong net income and revenue gains for the third quarter of its fiscal year 2012, buoyed by strong subscription revenue.

For the quarter, which ended 30 November, Red Hat reaped $38.2 million (£24.6 million) in net income, or $0.19 per diluted share, an increase of 46 percent from the same quarter a year ago, the company reported.

Red Hat's revenue grew to $290 million, a 23 percent increase from a year ago. Of this revenue, $246.5 million came from software subscriptions, a 24 percent increase from the previous year, the company reported. Most of the remaining revenue came from the company's training services.

In this time period, the company benefitted from both strong demand from enterprise customers as well as gains in market share, said Jim Whitehurst, Red Hat president and CEO, in a statement. Red Hat also closed its acquisition of open-source storage software company Gluster during the quarter.

Taking into account factors such as stock compensation and amortisation expenses, Red Hat reported non-GAAP net income of $55.7 million, or $0.28 per diluted share, as compared to $39.1 million, or $0.20 per diluted share, in the same quarter a year ago.