Red Hat, Inc., a provider of open source solutions, has announced financial results for its fiscal year 2014 third quarter ended November 30.
In a release on December 19, the Company noted that total revenue for the quarter was $397 million, an increase of 15 percent in U.S. dollars from the year ago quarter, or 17 percent measured in constant currency. Subscription revenue for the quarter was $343 million, up 17 percent in U.S. dollars year-over-year, or 18 percent measured in constant currency.
"Strong demand in Q3 for our core Red Hat Enterprise Linux and JBoss Middleware technologies led to results that exceeded guidance across several key financial metrics," said Jim Whitehurst, President and Chief Executive Officer of Red Hat. "Red Hat's technologies address the high growth opportunities in the data center to modernize and move away from legacy proprietary software in order to deploy open hybrid cloud technologies that drive IT velocity, efficiency and scalability."
Net income for the quarter was $52 million, or $0.27 per diluted share, compared with $35 million, or $0.18 per diluted share, in the year ago quarter.
Operating cash flow was $95 million for the third quarter, as compared to $100 million in the year ago quarter. At quarter end, the company's total deferred revenue balance was $1.12 billion, an increase of 14 percent on a year-over-year basis. Total cash, cash equivalents and investments as of November 30, was $1.33 billion after repurchasing approximately $40 million of common stock, or approximately 920 thousand shares, in the third quarter. Red Hat has repurchased approximately $239 million of common stock, or approximately 5.0 million shares, during the first nine months of fiscal 2014.
"We experienced an acceleration in our billings proxy growth in Q3, both year-over-year and sequentially, due in part to the strengthening of our European and U.S. federal government businesses," said Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. "The billings proxy, which we define as total revenue plus the change in deferred revenue found on the Statement of Cash Flows, was $453 million, up 19 percent in U.S. dollars and 21 percent in constant currency compared to last year. Red Hat associates executed well."
Red Hat is a provider of open source software solutions, using a community-powered approach to high-performing cloud, Linux, middleware, storage and virtualization technologies.
((Comments on this story may be sent to email@example.com))