Monday, June 25, 2012

Red Hat Continues to Grow Linux Biz in 1Q13


For Red Hat's first quarter fiscal 2013, revenue was $314.7 million, a 19 percent year-over-year gain. The bulk of that revenue came from Red Hat's software subscriptions, which came in at $272.6 million, a 21 percent gain. Net Income was $35.7 million, or $0.19 per share, which is a gain over the $32.5 million reported a year ago.
Red Hat CFO Charlie Peters explained during the company's earning call that earnings for the first quarter were negatively impacted by a $3.1 million charge related to Red Hat moving out of one of its existing buildings in Raleigh, North Carolina.


"You'll recall that we announced late last year that we will be moving to a larger building in downtown Raleigh to accommodate our growth," Peters said. "We have negotiated very favorable lease terms on the new facility and received significant incentives from the state, the county and the city in conjunction with this move."
Looking forward, Peters provided second quarter revenue guidance to be approximately $320 million to $322 million.
A key driver of Red Hat's growth during the quarter was big deals, valued at over $1 million each. Peters noted the top 30 deals set a Q1 record for deals over $1 million.
"In the quarter, we had 25 deals of $1 million or greater, nearly double from the prior year first quarter," Peters said. "Two deals were in excess of $5 million. And cross-selling was strong, with more than 40 percent of the deals including a middleware component and 3 being stand-alone middleware deals."

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