PR: Red Hat Reports Fiscal First Quarter Results
Jun 17, 2004, 20:30 (5 Talkback[s])
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Red Hat, Inc. today announced financial results for the first
quarter ended May 31, 2004.
Revenue for the first quarter of fiscal 2005 was $41.6 million,
a sequential increase of 13% compared to $37.0 million in the
fourth quarter of fiscal 2004, and a year-over-year increase of
For the first quarter of fiscal 2005, the company reported net
income of $10.7 million, or $0.05 per share. This represents an
increase of 113% over net income of $5.0 million, or $0.03 per
share, in the prior quarter, and an increase of 603% over net
income in the same quarter a year ago.
The company generated $30.1 million, or $0.16 per share, in
positive cash flow from operations during the first quarter. The
company ended the quarter with a cash and investments balance of
In the first quarter of fiscal 2005, the company increased its
deferred revenue balance to $86.1 million, a sequential increase of
$15.2 million, or 21%, as compared to the fourth quarter of fiscal
Highlights for the first quarter include:
Sales of subscriptions to Red Hat Enterprise Linux continued to
outpace the growth rate of the Intel-based server market, reaching
98,000 subscriptions in the first quarter, a sequential increase of
13%. This is comprised of 75,000 subscriptions sold into the
enterprise IT market and 23,000 subscriptions sold into the HPC and
Renewal rates for subscriptions sold to Red Hat Enterprise Linux
in prior years remained strong at approximately 85%.
Gross margins increased to record levels, with blended gross
margins at 80% and gross margins of Enterprise subscription
technologies at 93%.
Operating profit, excluding stock-based compensation, increased
to $6.5 million, or 16% of total revenue. This represents a
sequential increase of 43% on an adjusted basis and 93% on a GAAP
basis, as compared to the fourth quarter of fiscal 2004.
"Red Hat continued to show consistent execution in the first
quarter of fiscal 2005, as evidenced by a strong sequential growth
in subscription volumes, gross margins, and operating margins",
stated Kevin Thompson, Executive Vice President and Chief Financial
Officer. "Cash flow from operations once again remained strong,
representing 72% of total revenues in the quarter."