The Motley Fool: The Glowing Red Hat

“I’m dead set against evaluating a company solely on its income
statement, which is why I find it annoying when companies issue
earnings releases without a balance sheet or cash flow statement.
However, it’s hard to look at the income statement performance of
Red Hat and not come away impressed.

“For its third quarter, total sales increased 43.6% to $73.1
million, and, because software companies scale well once they get
enough sales flowing through the business, net income rose an even
larger 114%, and diluted earnings per share doubled to
$0.12…”

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