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December 26, 2008

Red Hat posts strong Q3

Open source software vendor Red Hat has reported a 20% increase in net income to $24.3m for the third quarter 2009, compared to $20.3m in the year-ago quarter, on revenue up 22% at $165.3m.

By CBR Staff Writer

Operating income grew 13% to $21m, while diluted EPS rose 17% to $0.12. Operating cash flow generated was $59.1m, compared to $59.6m in the same period last year.

The company said subscription revenue rose 17% to $135.45m, while training and services revenue grew 52% to $29.88m.

During the quarter, Red Hat acquired Israel-based server and desktop virtualization software developer Qumranet for $107m.

Charlie Peters, executive vice president and CFO at Red Hat, said: We delivered better-than-expected operating income, net income, and cash flow. While significant devaluations in most foreign currencies depressed our reported revenue, focused cost management and natural currency hedging enabled us to deliver better-than-expected operating margin. Our repurchase program reduced the diluted shares outstanding by approximately 11 million, or 6%, and produced a gain of $4.1m.

Looking ahead to the fourth quarter, the company expects revenue between $166m and $167.5m and adjusted EPS between $0.19 and $0.20.

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