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Red Hat Revenues Jump 20%

Red Hat turned in revenues of $219.8 million, up 20% year-over-year, for the summer quarter ended August 31

While the nearest other never-as-successful commercial Linux operation contemplates getting sold or some other fate, Red Hat Wednesday turned in revenues of $219.8 million, up 20% year-over-year, for the summer quarter ended August 31 although currency took a toll.

Not quite the $212 million the market hoped for but apparently good enough since the Hat's stock rose slightly after-hours after a dip during business hours.

The company raised its guidance for the full year to revenues of $877 million-$885 million, up from $835 million-$850 million, earning 76 cents-77 cents non-GAAP, up 22%-24%. RHEL6 is coming out later this year.

Subscription revenue in the quarter, 85% of the total, was $186.2 million, up 19%.

Non-GAAP earnings were 19 cents versus the Street's guess of 18 cents or $23.7 million, 12 cents a share, after deductions against 15 cents, or $28.9 million, last year. GAAP operating income for the second quarter was $34.1 million, up 24%.

Red Hat said it saw the "best billings growth rate in two years."

It's got deferred revenues worth $649.6 million, up 12%, and $1.05 billion in the bank.

It attributed the results to new project spending, expansion, cross-selling and strong renewals in its top accounts. The top 25 accounts up for renewal in the quarter re-upped at the rate of 120%. Twelve of the deals were worth at least a million dollars with one at $5 million and a third of all of them including some middleware. Another third included services. It said JBoss middleware should grow twice as fast as the rest of the business. Middleware and OS decision makers are the same/

Red Hat said its performance was broad-based across all geographies.

It's exploiting the cloud phenomenon with its new Cloud Foundations portfolio and claims some early deal activity, including its first private cloud management deal over a million dollars." It shrugged off any competition from Oracle and its Red Hat-based Unbreakable Linux.

In response to its numbers Red Hat stock shot up 9% Thursday to close at $40.07.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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