Red Hat Reports Fiscal Second Quarter Results

Red Hat Reports Fiscal Second Quarter Results

Red Hat, Inc. (NASDAQ:RHAT), the world’s leading provider of open source solutions to the enterprise, today announced financial results for its fiscal second quarter ended August 31, 2005.
Total revenue for the quarter was $65.7 million, a year-over-year increase of 42% and a sequential increase of 8%. Subscription revenue was $54.3 million, an increase of 56% year-over-year and 10% sequentially.The company reported operating income of $12.8 million, representing a 68% increase from the prior quarter and 90% from the year ago period. Net income for the quarter was $16.7 million, a sequential increase of 35% and year-over-year increase of 42%. Earnings per diluted share were $0.09 for the quarter, an increase from $0.07 in the prior quarter and $0.06 in the year ago period.

The company reported $45.8 million in cash flow from operations during the second quarter, a 48% year-over-year increase. After repurchasing $11.6 million of common stock and $20.0 million face value of the Company’s convertible bonds during the quarter, cash and investments totaled $966 million at the end of August 2005.At quarter end, the company’s total deferred revenue balance was $184.0 million, an increase of 85% on a year-over-year basis and 17% on a sequential basis.

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