[Incorrigible]

Red Hat Income Statement:

PERIOD ENDING		29-Feb-04	28-Feb-03	28-Feb-02
Total Revenue		124,737	90,926	78,937
Cost of Revenue		33,936	31,462	28,542
Gross Profit		90,801	59,464	50,395
	Operating Expenses
	Research Development	26,483	22,439	20,535
	Selling General and Administrative	61,208	51,666	57,739
	Non Recurring	-	1,461	57,623
	Others	164	1,062	49,547
	Total Operating Expenses	-	76,628	185,444
Operating Income or Loss		2,946	(17,164)	(135,049)
	Income from Continuing Operations
	Total Other Income/Expenses Net	10,786	10,826	15,535
	Earnings Before Interest And Taxes	13,732	(6,338)	(119,514)
	Interest Expense	-	-	-
	Income Before Tax	13,732	(6,338)	(119,514)
	Income Tax Expense	-	-	-
	Minority Interest	-	-	-
	Net Income From Continuing Ops	13,732	(6,338)	(119,514)
	Non-recurring Events
	Discontinued Operations	-	-	(10,355)
	Extraordinary Items	-	(261)	(10,347)
	Effect Of Accounting Changes	-	-	-
	Other Items	-	-	-
Net Income		13,732	(6,599)	(140,216)
Preferred Stock And Other Adjustments		-	-	-
Net Income Applicable To Common Shares		$13,732	($6,599)	($140,216)

 

[Incorrigible]

Numbers in thousands above

[JasonC]

Red Hat has lost $243 million of shareholder provided money, net, since it was formed. So far their business model is pay programmers by selling stock, and hope something eventually turns up. They have $2.2 billion in market cap. $2.2 billion would earn $110 million a year sitting in bonds. Until their net exceeds that - by enough to make up the amount already burned - they have added no net value as a company. They might, not saying it is impossible. But they haven't, to date.