<img alt="dcsimg" id="dcsimg" width="1" height="1" src="//www.qsstats.com/dcs8krshw00000cpvecvkz0uc_4g4q/njs.gif?dcsuri=/index.php/c/a/Business-Intelligence/Is-Red-Hat-in-Trouble&amp;WT.js=No&amp;WT.tv=10.4.1&amp;dcssip=www.baselinemag.com&amp;WT.qs_dlk=XbDcknb4fH1eM5B3adZ7lgAAABs&amp;">

Is Red Hat in Trouble?

By Steven Vaughan-Nichols  |  Posted 2006-09-27 Print this article Print

News Analysis: The market dumped Red Hat, but the Linux company's financial news really wasn't bad at all. (Linux-Watch)

Red Hat's total revenue for its fiscal 2007 second quarter may have grown, but when the second-quarter profit slipped 34 percent because of stock compensation expenses, the stock market had a fit and Red Hat's stock dropped 23.21 percent to $20.21 a share.

Was the news really that bad? It doesn't look like it was that awful.

Red Hat's total revenue for the quarter was $99.7 million, an increase of 52 percent from the year-ago quarter and 19 percent from the prior quarter.

Click here to read an eWEEK Labs review of Red Hat Enterprise Linux 5 Beta 1.

Subscription revenue was $84.9 million, up 56 percent year-over-year and 19 percent sequentially.

JBoss-related revenue of $7 million was at the top of management's previously provided guidance.

Red Hat Enterprise Linux OEM (original equipment manufacturer) revenue grew 90 percent year-over-year.

The net income for the quarter was $11.0 million or $0.05 per diluted share, compared with $16.7 million or $0.09 per diluted share for the second quarter of the last fiscal year.

Read the full story on Linux-Watch: Is Red Hat in Trouble?

Steven J. Vaughan-Nichols is editor of eWEEK.com's Linux & Open Source Center and Ziff Davis Channel Zone. Prior to becoming a technology journalist, Vaughan-Nichols worked at NASA and the Department of Defense on numerous major technological projects. Since then, he's focused on covering the technology and business issues that make a real difference to the people in the industry.
eWeek eWeek

Have the latest technology news and resources emailed to you everyday.