Red Hat revenues in 20% climb

"Commercial Linux and middleware distributor Red Hat revealed its financial results for its third quarter of fiscal 2011 today, and if revenues are any guide, then the company just keeps growing like there never was a recession. That said, Red Hat's profits are under pressure, thanks to product transitions, and Wall Street won't be happy about that at all.

"In the quarter ended November 30, Red Hat booked $235.6m in sales, up 21.2 per cent from the year ago period. Net income was up 58.5 per cent, to just over $26m, but the company is not really suddenly more profitable. Rather, in the year ago period, Red Hat had $8.75m in fees associated with its settling of a class action lawsuit dating from its restating financial results in fiscal 2002 and 2003 and in the first quarter of 2004. Ignoring the effect of that lawsuit, Red Hat's net income only grew a little more than 5 per cent."

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