Red Hat reports revenue up and acquires ManageIQ
Red Hat has reported that its third quarter revenue is up 18% year-on-year, at $343.6 million, with subscription income rising 19% (to $294.2million). With estimates placing Red Hat at 29 cents a share, the reported earnings beat those estimates, coming in at 30 cents a share. According to Bloomberg, that was enough to see Red Hat shares rising in late trading.
Also, in the third quarter, Red Hat says that it closed the FuseSource acquisition, which it announced in June, and repurchased $52 million of common stock. Under the headline figures, Red Hat's recent acquisitions and associated costs took their toll, with GAAP operating income down to $49.9 million, a 7% drop year-on-year.
But that did not stop Red Hat from also announcing that it had signed a deal to acquire cloud management and automation maker ManageIQ. Red Hat says that ManageIQ's Hybrid Cloud Operations Management Tools will sit along side its Red Hat CloudForms and Red Hat Enterprise Virtualisation products to provide cross-cloud platform management. ManageIQ's tools can handle orchestration of cloud resources over IaaS platforms such as Red Hat Enterprise Virtualisation, Amazon Web Services, Microsoft and VMWare. The $104 million cash acquisition is subject to approval by the ManageIQ stockholders.