View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
December 19, 2014

Everything you need to know about Red Hat’s Q3 financial results

Lower profits, retirement and outlook push.

By

1. Lower profit beats estimates

The company, which is known for its Linux Open Stack platform, said net profits for the third quarter ending November 30 hit $47m, or 26 cents per share, from $52m a year ago, as sales rose 15% to $456m.

Analysts on average had expected a profit of 40 cents per share on revenue of $451.2m, according to data compiled by Thompson Reuters.

The firm, which bought mobile app firm Feed Henry in September, put the growth down to higher demand for its software used in data centres and cloud computing.

"Cloud computing and big data trends are driving increased demand for open source technologies," said CEO and president Jim Whitehurst.

"We believe our leadership position in the open source industry and broad portfolio of Open Hybrid Cloud technologies creates a strong position for Red Hat to capture market share in the cloud-enabled data centre."

2. CFO quits

Red Hat also announced that CFO Charles E. Peters plans to retire in the next 12 months. Peters, who took the role in 2004, noted that Red Hat’s annual revenue has expanded from $150 million when he took the job to nearly $1.8 billion this year.

3. Outlook

Red Hat boosted its revenue projections and now expects annual revenue will come in between $1.8bn and $1.785 billion.
It also expects an adjusted profit of $1.57-$1.58 per share for the full year, up from its previous forecast of $1.53-$1.55.

Content from our partners
European Technology Leadership: Deutsche Bank CTO Gordon Mackechnie
Print’s role in driving the environmental agenda
What finance leaders get wrong about digital transformation

4. IBM and Red Hat partnership

Earlier this week, Red Hat announced the launch of its Enterprise Virtualization for IBM’s Power Systems
The firms said that pairing Red Hat’s Linux operating system with IBM Power Systems will enable enterprises to achieve greater database and transactional speed, as well as lower their workload footprint.

Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU