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Subject: Subscription growth helps boost Red Hat Q3 profit


Author:
redhat_moneyhat
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Date Posted: 14:18:29 12/22/04 Wed

Subscription growth helps boost Red Hat Q3 profit
By Rex Crum
Last Updated: 12/22/2004 4:52:05 PM


SAN FRANCISCO (CBS.MW) -- Red Hat reported a 2005 third-quarter profit Wednesday of $10.8 million as the Linux and open-source software developer's important subscription revenue nearly doubled over the year-ago period.

Raleigh, N.C.-based Red Hat (RHAT) said it earned 6 cents a share on total revenue of $50.9 million. The company met the earnings estimate of analysts surveyed by Thomson First Call, but fell shy of analysts' $52 million revenue forecast.

Still, Red Hat topped its year-ago figures when it earn $4.3 million, or 2 cents a share, on revenue of $33 million.

Red Hat said subscription revenue totaled $39.2 million, up from $21.8 million in the year-ago quarter. Subscriptions to Red Hat's flagship Enterprise Linux software reached 132,000 units.

The company didn't give any immediate fourth-quarter earnings or revenue outlook. In after-hours trading, Red Hat shares fell 47 cents to $14.60 after giving up 6 cents in the regular market session.

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