Red Hat revenues up 112% in Q3

Linux vendor Red Hat announced its third-quarter financial results last week, listing revenues of $US22.4 million for the period ending November 30, an increase of 112% from a year ago.

          Linux vendor Red Hat announced its third-quarter financial results last week, listing revenues of $US22.4 million for the period ending November 30, an increase of 112% from a year ago.

          The company reported an adjusted net loss of $US899,532, down from $5.4 million in losses a year ago.

          Net losses before adjustments totalled $US21.4 million, compared with a net loss of US$6.3 million, a year ago. The adjustments were made for amortization of goodwill and intangibles, sales and marketing, research and development and other costs.

          In an interview last week, Red Hat president and CEO Matthew Szulik said his company "clearly is on the doorstep of profitability," which is expected sometime next year. "The positive aspect of this is that customers are responding" by adopting open-source technologies and Red Hat products.

          One of the keys has been customers who have consolidated their Unix technologies to Red Hat Linux, along with increased demand from device manufacturers, he says.

          Bill Claybrook, an analyst with the Aberdeen Group of Boston, says the financial report included good signs for the company.

          "There's absolutely no doubt in my mind that Red Hat is going to be successful," Claybrook says. The company has several attributes, including the largest brand recognition in the Linux community, a good development and support staff and money in the bank, he says.

          "Linux is just barely [getting] going as far as I'm concerned," Claybrook says.

          During the quarter, the company launched the latest version of its operating system, Red Hat Linux 7, which includes enhanced security, improved high-end Intel processor compatibility and increased 3D support.

          Also in the quarter, Compaq Computer announced the availability of its ProLiant servers pre-installed with Red Hat Linux, and the company acquired C2Net Software, which developed the Apache-based Stronghold secure web server.

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