Red Hat sees revenues rise, profits drop
According to its financial results for the second quarter of its 2013 fiscal year, US-based Linux distributor Red Hat has seen increased demand for its open source applications. The company has reported quarterly revenues of $323 million (approximately £199 million), an increase of 15% compared to the previous year. Its subscription software revenues rose by 17% compared to the same quarter last year to $279 million. The company posted a fall in net profits to $35 million, 12.5% down on last year's figure of $40 million; profit per share for this quarter was $0.18.
Red Hat says that the slight drop in profits is due to increased investment in areas such as storage applications. In June, for example, the company presented its new Red Hat Storage 2.0 product. The acquisition of two smaller companies has also impacted on the balance sheet. According to Bloomberg, analysts were mildly disappointed by the results, with the company's share price dropping by nearly 3% in after-hours trading.