News

Recession leads to more business for Red Hat

Simon Quicke

Red Hat has reported rising licensing revenue as it benefits from increased customer interest in open source sparked by the recession.

There has been an argument that in a downturn users that have been happy to stick with an established IT infrastructure are more prepared to shop around, and Jim Whitehurst, president and CEO of Red Hat, backed up that view.

"Our value proposition is even more compelling in a challenging economic environment, and we believe that is a key driver to our solid financial results and market share gains," he said.

Revenue for the supplier's fourth quarter increased by 18% to $166.2m and total year revenue hit $652.6m from $541.2m in fiscal year 2008.

GAAP net income for the quarter dropped to $16m from $24.3m in the same period last year. Net income for the year increased to $78.7m from $76.7m.

Subscription revenue increased for the quarter by 14% to $139.4m.

A version of this story originally appeared on the Microscope website.


Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
 

COMMENTS powered by Disqus  //  Commenting policy