Red Hat quarterly revenue and profits increase
American Linux distributor Red Hat has announced its earnings for the first quarter of its 2012 fiscal year, ending on 31 May 2011. In a statement, Jim Whitehurst, President and Chief Executive Officer of Red Hat, said that the latest sales figures show that "there is a fundamental shift in IT spending, in which cloud computing and virtualization have become key strategic priorities".
The company reported a total revenue of $264.7 million for the first quarter 2012 fiscal year – an increase of 27% compared to the same quarter just one year ago. Subscription revenues for the quarter totalled $225.5 million – an increase of 21% compared Q1 2011. Net income for the quarter rose from $24.1 million in Q1 last year to $32.5 million.
Red Hat's full year revenue for its last fiscal year, 2011, was $909 million, short of the $1 billion revenue some analysts had predicted. However, Whitehurst said that the company is still on its way to becoming "the first pure-play open source company to achieve a billion dollars in revenues next (2012) fiscal year".
- Red Hat is on its way to $1 billion in sales, a report from The H.