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23 December 2009 ,
Written by Dhruv Tanwar
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Open source software provider Red Hat announced its financial results for its fiscal year 2010 third quarter ended November 30, 2009.
Total revenue for the quarter was $194.3 million, an increase of 18% as compared to the corresponding period a year ago. Subscription revenue for the quarter was $164.4 million, up 21% year-over-year. Operating income was $19.8 million including a previously announced charge of $8.8 million for a litigation settlement, against $21 million a year ago in the same quarter. Net income was $16.4 million, or $0.08 per diluted share, against $24.3 million, or $0.12 per diluted share, from the corresponding period a year ago. Red Hat said the net income was reduced by $0.03 per diluted share due to the charge for the litigation settlement.
Operating cash flow totaled $54.1 million, compared to $59.1 million from the year ago quarter. Due to record billings, accounts receivable increased $24 million compared to last year even as days sales outstanding (DSO) improved to 54 days compared to 59 days last year. At November 30, the company's total deferred revenue balance was $618.7 million, an increase of 23% on a year-over-year basis. Total cash, cash equivalents and investments as of November 30, 2009 were $959.1 million after repurchasing $52.3 million, or 1.9 million shares, of common stock.
Jim Whitehurst, President and Chief Executive Officer of Red Hat said the company's double digit growth in the current economic environment was driven by compelling value proposition and outstanding service. Red Hat's Chief financial Officer Charlie Peters said strong bookings, particularly in North America, led to strong billings and greater than 20% growth in subscription revenue and deferred revenue. |
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