Red Hat Reports Fiscal 2007 Second Quarter Results

Red Hat Reports Fiscal 2007 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 2007 second quarter. Total revenue for the quarter was $99.7 million, an increase of 52% from the year-ago quarter and 19% from the prior quarter. Subscription revenue was $84.9 million, up 56% year-over-year and 19% sequentially. JBoss-related revenue of $7 million was at the top of management’s previously provided guidance.

Net income for the quarter was $11.0 million or $0.05 per diluted share compared with $16.7 million or $0.09 per diluted share for the second quarter of the last fiscal year. Due to differences in the accounting treatment for taxes and stock compensation expense between fiscal 2006 and 2007, net income is not directly comparable between these periods.

After adjusting for these accounting differences, non-GAAP adjusted net income for the second quarter of fiscal 2007 was $23.7 million, or $0.11 per diluted share. This compares to non-GAAP adjusted net income of $17.7 million, or $0.09 per diluted share in the second quarter of the last fiscal year. At quarter end, the company’s total deferred revenue balance was $284.1 million, an increase of $29.4 million, or 12% when compared to the end of the last fiscal quarter.

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