Red Hat revenues exceed a billion dollars
Red Hat has recorded an annual revenue of a billion dollars with its latest fourth quarter results, making it the first "pure play" open source company to make a billion dollar revenue in one year. The company reported a fourth quarter revenue of $297 million, up 21 per cent compared to the same quarter a year before. This brought it to a fiscal year revenue of $1.13 billion, up 25 per cent year on year. In terms of profit, Red Hat reported a net income of $36 million for the quarter, down from the previous quarter's $38.2 million, but up from the quarter a year ago at $33.5 million. Over the past six years, Red Hat has steadily increased it's quarter on quarter revenue; for example, in the first quarter of 2007, it had a $84 million revenue and made $13.8 million profit.
"The strength of our fourth quarter was a fitting conclusion to a remarkably strong year for our business", said Red Hat's CEO, Jim Whitehurst. Red Hat also joins the elite club of all software companies with a billion dollar revenue. Among the people congratulating Red Hat on this achievement was the Linux Foundation's Jim Zemlin who said, "This achievement will finally put to bed the argument that "nobody can make money with open source".
Red Hat also announced a stock repurchase program which will see the company buy $300 million of its own shares. The new program supercedes Red Hat's current repurchase program which has seen the company acquire around $214 million of its stock in the form of over 5.8 million shares; Red Hat has around 192.7 million shares of common stock in circulation. Red Hat will fund the repurchase from its working capital of $1.3 billion of cash and investments.