by Jeremy Kirk

Red Hat nearly doubles profit in third quarter

news
Dec 22, 20051 min

Company says investments in personnel and infrastructure paid off

Red Hat Inc. nearly doubled its profit in the third quarter compared to the same period a year earlier, it said on Wednesday.

The Linux vendor reported diluted net income of US$24.5 million for the three-month period to Nov. 30, compared to $12.4 million for the same quarter in 2004. Diluted net income per share was $0.12, up from $0.06 the year earlier.

Revenue came in at $73.1 million, a 44 percent gain over third-quarter 2004 revenue of $50.9 million.

The results reflected investments in personnel and infrastructure along with improvements in the company’s day-to-day operations, said Charlie Peters, Red Hat’s executive vice president and chief financial officer, in a news release.

The company’s subscription revenue increased 54 percent year-over-year, coming in at $60.2 million. Early last month, Red Hat officials said they had signed up 37,000 customers over the last three quarters, many of whom are small- to medium-sized enterprises.