“Red Hat is still on track for 100 per cent year-on-year revenue
growth by the end of next fiscal year, the Linux company’s newly
appointed CFO said yesterday.”
“Red Hat said on 14 September that it was on course to
become profitable by the end of December 2001, when it would also
see 100 per cent revenue growth on fiscal 2000. … Thompson
restated that outlook – important, given Wall Street fears over
Linux companies’ potential profitability that arose after VA Linux
Systems’ profit warning earlier this week.”
“Thompson said Red Hat would be safe from the downturn on dotcom
expenditure – a key factor in VA Linux Systems’ warning – because
of its different business model. “They sell hardware and software,
we sell software and services,” he said. “We do not have nearly the
dependence on the dotcoms and don’t expect that we will.”