The Channel logo


By | Ashlee Vance 1st July 2005 05:16

Red Hat milks corporate Linux sales for strong Q1

Subscriptions look solid

A bustling enterprise Linux business carried Red Hat to improved first quarter results. The software maker reported revenue of $60.8m in the period - a solid 46 per cent jump over $41.8m in the same quarter one year ago. Red Had enjoyed a slight increase in services and embedded OS revenue, while subscriptions to its corporate Linux product jumped significantly. The improved overall business helped Red Hat post net income of $12.4m - a rise over the $10.9m last year.

Red Hat's CFO Charlie Peters spared investors undue enthusiasm when describing the results.

"Our results for the first quarter represent a solid start to the fiscal year," he said. "We continue to experience strong customer demand."

Red Hat's flagship enterprise OS pulled in $48.7m during the quarter, which compares to $30m last year. Embedded revenue increased to $497,000 from $225,000. Services revenue for the enterprise OS hit $11.4m, which compares to $10.5m one year earlier.

Red Hat, however, saw a dramatic fall in embedded services revenue from $710,000 down to $157,000 in the first quarter.

Management warned that a stronger dollar could put pressure on future quarters. Red Hat expects second quarter sales to come in between $64m and $65m. ®

Related stories

Novell launches GroupWise 7
IBM gets 10 years under Sun
Microsoft is profiting from punishment - rivals

alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe