Red Hat Reports Third Quarter Revenue Gains of 112% over FY2000

By Michael Hall, LinuxToday

Red Hat today announced that their third quarter revenue was up
112% over last year’s third quarter results, and that the company
remains on track to achieve profitability next year. The company
reported net losses of $0.01 per share this quarter.

In their quarterly report, the company reported revenue of $22.4
million for the third quarter ended November 30, 2000, an increase
of 112% versus the $10.5 million reported for the third quarter of
fiscal 2000 and an increase of 21% over the second quarter of
fiscal 2001.

Gross margin was 60% for the third quarter fiscal 2001, versus
58% reported in the second quarter fiscal 2001 and 41.5% in the
third quarter fiscal 2000.

The company reported an adjusted net loss of $900,000, or $0.01
per share, for the third quarter of fiscal 2001, compared to an
adjusted net loss of $5.4 million, or $0.04 per share, for the
third quarter of fiscal 2000. On a reported basis, the net loss was
$21.4 million, or $0.13 per share, compared with a net loss of $6.3
million, or $0.05 per share.

“We are seeing increasingly strong demand for Red Hat leadership
solutions,” commented Matthew Szulik, President and CEO of Red Hat.
“Solid results are being driven by customers consolidating their
UNIX technologies to Red Hat Linux, increased demand from device
manufacturers, and continued execution of a solid business
model.”

Other highlights over the third quarter included the launch of
the Red Hat Network, which represents a shift toward a
services-based business model for the company; and the release of
Red Hat 7.