Red Hat boosts revenue and profit
American Linux distributor Red Hat has announced its earnings for the first quarter ending on the 31st of May, 2010. Jim Whitehurst, President and Chief Executive Officer of Red Hat, said that, "We had a strong start to our fiscal year with 20% organic revenue growth and 28% non-GAAP operating income growth."
The company reported a total revenue of $209.1 million for the first quarter 2011 fiscal year – an increase of 20% compared to the same quarter just one year ago. Subscription revenue for the quarter totalled $179.1 million – an increase of 20% compared Q1 2010. Net income for the quarter rose from $18.5 million in Q1 last year to $24.1 million. Overall sales increased by 6.7% and net profit increased by 3.0% over last year's results.
Originally announced along with its fourth quarter and fiscal year 2010 earnings, Red Hat has already started to re-purchase its common shares. In the first fiscal quarter of 2011, the company bought back 2.5 million shares worth $74 million. The new re-purchase program will buy up to $300 million of the company's stock and replaces the previous $250 million program.
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