Red Hat revenues soar 42% after Linux and JBoss launches

Red Hat has seen its first quarter revenues shoot up 42% on the same period last year boosted by a new release of its Enterprise Linux distribution and new editions of JBoss products.

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Red Hat has seen its first quarter revenues shoot up 42% on the same period last year boosted by a new release of its Enterprise Linux distribution and new editions of JBoss products.

Red Hat distributes open source Linux software and charges companies a subscription to provide updates and other technical support.

The Linux distributor posted profits of $16.2m (£8.1m) on revenues of $118.9m (£60m) for the quarter ending 31 May. In the same quarter a year ago, Red Hat made profits of $13.6m (£6.8m) on revenues of $84m (£42m).

Red Hat said $103m (£51.5m) of its $118.9m quarterly revenue was subscription revenue.

The company released its Red Hat Enterprise Linux 5 in March, and introduced new developer class and enterprise class editions of its JBoss Java-based software, following its acquisition of JBoss in 2006. Red Hat also rolled out its service-oriented architecture strategy during the quarter.

Red Hat said that after excluding one-off charges and adjusting for stock compensation and tax expenses, its adjusted net income for the quarter was $33.7m (£16.8m).

Charlie Peters, Red Hat’s chief financial officer, said the company forecasts revenues of between $124m and $126m in the current quarter, which ends on 31 August.

Earlier this month, Red Hat Linux was given the highest level of security certification, an achievement is expected to make it more attractive to government buyers.

The Linux distributor is still fending off approaches from Microsoft, which would like to tie Red Hat into a licensing and patents deal similar to its agreement with Novell.

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