Published in News
Red Hat doing well
by Nick Farrell on21 December 2012
Who needs Linux on the desktop?
While the rest of the world is obsessed with the consumerisation of IT, it seems that the Linux outfit Red Hat is making a killing by focusing on the business use of Open Sauce.
Red Hat, which is probably the world's largest distributor of Linux operating software, managed to build a third-quarter revenue. As a result its shares went up six per cent in after-market trading. Not only is the company making a killing, but it also announced that it was writing a cheque for the privately held ManageIQ, which provides management and automation programs for cloud computing, for $104 million in cash.
This is the fourth acquisition for Red Hat since last year. Red Hat announced that it is expecting revenue of $347 million to $351 million. This quarter was not so great. Income fell to $34.8 million from $38.2 million. But overall revenue rose 18 per cent to $344 million, beating estimates of $338 million.
Most of the cash came from Red Hat's subscription revenue which rose 19 per cent to $294.2 million in the quarter ended November 30.