Open source firm Red Hat has reported revenues of $209.1m for the fiscal year 2011 first quarter, an increase of 20% compared to $174.4m for the same period last year. Subscription revenues rose by 20% to $179.1m from $148.8m.
Jim Whitehurst, president and CEO of Red Hat, said: "We had a strong start to our fiscal year with 20% organic revenue growth and 28% non-GAAP operating income growth.
"We executed well and achieved a significant increase in the number of large deals booked year-over- year, including several with an initial consulting component which we believe is a positive indicator of new project spending and future subscription billings."
The company posted a gross profit of $175.9m, compared to $147.9m for the same period last year. Operating income rose to $34.2m from $25m, with operating margin of 16.4% in the first quarter.
For the quarter ended May 31, 2010, the company reported a net income of $24.1m, an increase of 30% compared to $18.5m in the same period a year ago.
Charlie Peters, executive vice president and CFO of Red Hat, said: "Our business was strong with healthy subscription renewals, large deals, continued progress in our ‘free to paid’ initiative and strong growth in our services business.
"We continued to invest in our growth, in both engineering and sales, and it is paying off. Despite significant foreign currency volatility, both revenue and deferred revenue experienced double digit growth in US dollars year-over-year. Our balance sheet remains strong, allowing us to repurchase over $74m of our common shares, returning additional value to shareholders."
