Red Hat, Inc. today reported financial results for its first
quarter of fiscal year 2004. The company’s fiscal first quarter
ended on May 31, 2003. These results are provided in full GAAP
format.
In the first quarter of fiscal 2004, Red Hat achieved revenue of
$27.2 million, a sequential increase of 5% compared to $25.9
million in the fourth quarter of fiscal 2003, and a year-over-year
increase of 39%.
For the first quarter of fiscal 2004, the company achieved net
income of $1.5 million, or $0.01 per share. This compares to a net
loss of $273,000, or break-even per share, in the prior quarter,
and a net loss of $4.6 million, or $0.03 per share, in the same
quarter a year ago.
The company reported a net operating loss of $1.1 million,
compared to a net operating loss of $2.4 million in the prior
quarter and a net operating loss of $7.2 million in the first
quarter of the prior year.
Highlights for the first quarter include:
First quarter sales of annual subscriptions for the Red Hat
Enterprise Linux family of technologies increased sequentially by
2,000, or 10%, to 23,500 subscriptions.
Subscription revenues from Enterprise Technologies grew 14%
sequentially and 104% year-over-year.
Blended gross margins remained strong at 68%, while gross
margins of Enterprise subscription technologies, including retail
revenues, also remained strong at 82%.
Continued scaling of the business model, as the sequential
reduction in the company’s operating loss of $1.3 million equated
to the sequential increase in revenues.
“Red Hat continues to show strong operating performance,
including solid growth in cash flows, deferred revenues, and net
income, which translates into continued leverage of our business
model,” stated Kevin Thompson, Executive Vice President and Chief
Financial Officer.