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

Dec 14, 2000, 23:31 (2 Talkback[s])
(Other stories by Michael Hall)

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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.