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Red Hat Q1 Net Income Up; Ups 2007 Revenue Outlook

Red Hat Inc., a distributor of open-source Linux software, has reported an 11 percent increase in first-quarter net income of USD 13.8 million, or a cents per share from USD 12.4 million, or 7 cents a share, a year earlier. The rise in the net income was mainly helped by subscriptions from corporate customers.

Revenue for the quarter ended March 31 rose to USD 84.0 million from USD 60.8 million, a year ago.

Analysts, on average, had expected net income of 6 cents per share on revenue of USD 83.3 million in the first quarter, according to Reuters Estimates.

Excluding stock-based compensation based on 5 percent tax rate the company earned 14 cents a share.

The company also raised its fiscal 2007 revenue target to a range of USD 400 million to USD 405 million to reflect the recent acquisition of rival JBoss and stronger-than-expected business.

This was up from a previous forecast range of USD 370 million to USD 375 million and above the average Wall Street view for full-year revenue of USD 383.4 million.


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