Red Hat boosts revenue
For the second quarter of its fiscal year 2011, Linux distributor Red Hat reports an increase its revenue of over $219.8 million (approximately £140 million) an increase of 20% over the same quarter in the previous year. Although, according to the report, the net profit declined from $28.9 million $23.7 million, profit a year ago included a one-time tax benefit to the amount of $7.3 million.
Jim Whitehurst, President and Chief Executive Officer of Red Hat stated,"We continued to benefit from new project spending, expansion and cross selling of our product solutions and strong renewals in our top accounts. Our sales execution in the quarter resulted in organic revenue growth of 20% and the best billings growth rate in two years. During the quarter, we introduced our Cloud Foundations portfolio in an effort to help our customers take advantage of the benefits from cloud computing in an open and cost effective way. Our flexible cloud stack will enable customers to run enterprise applications across physical servers, virtual platforms, private clouds and multiple public clouds. We are beginning to see solid interest in our cloud and virtualisation initiatives as well as some early deal activity, including our first private cloud management deal over a million dollars."
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