Red Hat reports slim profit

CNet/News.com ^ | 12/17/2002 | Stephen Shankland

[B Knotts]

Red Hat's revenue increased 14 percent to $24.3 million for its third fiscal quarter with a small profit of $305,000, the Linux seller reported Tuesday.

The Raleigh, N.C.-based company's performance for the quarter, ended Nov. 30, did slightly better than projections from analysts surveyed by First Call. Revenue was higher than the consensus expectation of $23.4 million, with break-even earnings per share meeting the estimate.

It's the first time Red Hat has reported a profit using Generally Accepted Accounting Principles (GAAP), according to the company. In the year-ago quarter, it posted a net loss of 9 cents per share on revenue of $21.2 million.

[B Knotts]

It's a small profit, to be sure, but Red Hat seems to be doing better than many tech companies these days.

[B Knotts]

FYI BUMP

[lelio]

Seems like most of their money comes from a $700 yearly subscription to RH Advanced Server which 10000 people have paid for. But that's only $7M a year, how do they get to $100M ($25M/quarter)? Maybe I misread the article.