Red Hat continues to enjoy its reign in the corporate GNU/Linux world and has posted more than $10 million in profit report. With 98,000 enterprise subscriptions signed last quarter, the company's CEO couldn't be more happy with where the business is heading. Although Red Hat has decided to end the product line for home users, they didn't entirely abandon the community and have set up the Fedora Project to carry out the task of providing a free GNU/Linux distribution.
Red Hat posted more than $10 million in profit for its first fiscal quarter of 2005 amid a 53 percent increase in sales from the same quarter a year ago.
For the quarter ended May 31, the Raleigh, NC Linux software company reported net income of $10.7 million, or 5 cents per share, up from $1.5 million during the first quarter of 2004. The 10-year-old company reported its first profit in early 2001.
Sales rose to $41.6 million, nearly a 53 percent bump from $27.2 million during the same quarter a year ago. Enterprise subscriptions for the first quarter generated $30 million in sales, while enterprise services revenues accounted for $11.2 million. Revenue jumped 13 percent sequentially from the previous quarter's $30 million.
Red Hat reported its first quarter earnings several days after its Chief Financial Officer Kevin Thompson tendered his resignation. During Thursday's call, Red Hat CEO Matt Szulik applauded the CFO for a job "well done" and said Thompson would continue in that role until the company names a successor before the next earnings call in September.
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News source: CRN