Red Hat posts higher 2nd-quarter profit, sales; shares jump after hours

Wednesday, September 23, 2009

Red Hat posts higher 2Q profit, sales

RALEIGH, N.C. — Red Hat Inc., the software distributor behind the Linux operating system, said Wednesday its fiscal second-quarter profit grew as companies opted for its source products amid the economic downturn.

For the quarter ended Aug. 31, the company earned $28.9 million, or 15 cents per share, up from net income of $21.1 million, or 10 cents per share, in the same period a year earlier.

Revenue rose 12 percent to $183.6 million from $164.4 million.

Its adjusted earnings were 20 cents per share in the latest quarter after adjusting for stock compensation and amortization expenses. The quarter’s results were also boosted by a tax benefit.

Analysts, on average, were expecting a profit of 15 cents per share on sales of $179.1 million, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their estimates.

“We continue to be optimistic about Red Hat’s future and believe the company is well positioned when the economic and (technology) spending environment improves,” said Jim Whitehurst, president and CEO, in a statement.

Red Hat’s shares rose 87 cents, or 3.5 percent, to $25.75 in after-hours trading. The stock had closed down 52 cents at $24.88 during the regular session.

September 29, 2009: 6:12 pm

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Disclaimer: Author does not represent any legal position of
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September 24, 2009: 4:26 am

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