“Buoyed by better-than-expected financial results for the
first quarter of fiscal year 2001, Red Hat (RHAT) executives were
racing to jump on the growing “pathway to profitability” bandwagon
this week.
“We believe [Red Hat’s] operating loss will decrease for the
balance of 2000, until we reach profitability in 2001,” said Red
Hat chief financial officer Harold Covert.”
“Covert’s statement followed on the heels of Red Hat reporting
operating losses for the first fiscal quarter of 2 cents a share, 2
cents better than consensus analysts’ expectations according to
First Call/Thomson Financial. Revenues, meanwhile, grew to $16
million, a 95 percent increase over the same period in 1999, while
gross margins grew to 54 percent from 51.7 percent a year ago.”