Red Hat profits buck recession


Red Hat profits buck recession

Alex Scroxton

Open source supplier Red Hat has posted strong financial results for the first quarter of the year, defying the downturn.

The North Carolina-based open source enterprise software company filed its numbers for the first quarter of its fiscal 2010 today, stashing away $18.5m (£11.35m) in net profit, up 6.9% year-on-year, and beating Wall Street estimates comfortably.

Meanwhile, sales bounced up 11% over the same period to $174m.

Red Hat president and CEO Jim Whitehurst praised "better than expected" revenues during the quarter, attributing the group's healthy performance to its subscription-based services model, which has kept the cash flowing at a critical time.

CFO Charlie Peters pointed to future investment in key growth areas, saying: "While we remain focused on managing discretionary costs and improving efficiencies, we also continue to invest in growth opportunities in middleware, virtualisation and cloud computing."

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