Red Hat posts impressive first quarter results, but is it enough?
Linux distributor and open source giant Red Hat is riding high financially, but their Q1 results have disappointed some Wall Street analysts.
Open source juggernaut Red Hat have had a busy week. After revolutionary cloud releases and the landmark arrival of JBoss Enterprise Application Platform 6 a few days ago, there’s also financial results to celebrate now the company has released its first quarter fiscal results.
First glances show some impressive figures – total revenues rose to $314.7m, an increase of 19% from the same time last year, whilst revenues from software subscriptions were up by 21% to $272.6m.
“Our first quarter results represented a strong start to our fiscal 2013. Red Hat’s compelling value proposition and innovative, open source technologies continued to drive our financial success and market share gains.” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat.
Despite posting encouraging results, it wasn’t enough to persuade those on Wall Street, with Red Hat’s share price taking a nosedive (falling almost 10%) soon after the announcement. The $310m billings figure also failed to excite many analysts, who were disappointed with the postings – despite the fact that it exceeded original expectations.
In the grand scheme of things, a slight underperformance in the first open source company to break the billion dollar revenue mark last financial year isn’t exactly the worst news in the world. With Red Hat’s announcements this week, we’re expecting a boosted Q2 with a massive uptake from the enterprise world for some of the recently-announced technologies.