21 June 2012, 17:06

Red Hat increases revenue by 19 per cent

Red Hat logo The US-based Linux distributor Red Hat has announced its financial results for the first quarter, which ended on 31 May, of its 2013 fiscal year. The company's total revenues rose from $264.7 million to $314.7 million, an increase of 19% compared to the same time last year. Revenues from software subscriptions rose by 21% to $272.6 million, while net income went up 15% to $37.5 million.

Despite the increase, Red Hat's share price dropped by nearly ten per cent in after-hours trading on the New York Stock Exchange to just over $51. Although the open source specialist's profits of 30 cents per share exceeded analyst expectations, according to Bloomberg, investors were disappointed by the company's billings figure, which, at $310 million, was 9 million short of average analyst estimates.

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