Red Hat has posted a big sales increase for the second
quarter, but net profits are down.
Total sales for the quarter were $99.7m (£53.8m), up 52% on the
same period last year.
Licence revenue was $84.9m, up 56% from a year ago, said Red
Hat. The company recently acquired JBoss, and sales related to that
company were $7m – above previous financial guidance offered by
management. But net profits fell to $11m, compared to the $16.7m
posted in the same quarter last year.
Red Hat said this was down to “differences in the accounting
treatment for taxes and stock compensation expense between fiscal
2006 and 2007”.
It said net profits actually rose when these changes were taken
out of the equation.
Charlie Peters, Red Hat’s chief financial officer, said, “We
expect operating results and cashflow will improve in the second
half of fiscal 2007 since much of the heavy [JBoss] integration
work is already behind us.”
