Red Hat revenues jump to $37m

Linux supplier Red Hat reported a 43% rise in its quarterly revenues year on year, reaching $37m (£20m) for the fourth quarter of...

Linux supplier Red Hat reported a 43% rise in its quarterly revenues year on year, reaching $37m (£20m) for the fourth quarter of 2004.

Net income amounted to $5m, up from a loss of $273,000 for the same quarter in 2003.

Revenue for the financial year ending 29 Febraury amounted to $126.1m, up from $90.9m in 2003.

The company gained 4,000 new customers and sold 87,000 subscriptions for its Red Hat's Enterprise Linux software during the quarter. Of these, 61,000 subscriptions were sold into the enterprise IT market and 26,000 were sold in to high-performance computing and web hosting space.

International sales for the company grew by 107%, and amounted to 32% of Red Hat's income, said company chief executive officer Matthew Szulik.

Although much attention is being directed toward the role of Linux in China, Germany and India are proving to be important markets for Red Hat.

Szulik downplayed the effects of claims by SCO that the Linux operating system violates SCO's intellectual property and copyright.

"Now after almost one year in which the infringing code - or the supposed infringing code - has not been publically revealed, the marketplace for Linux and open-source software continues to grow, and our legal bills continue to add up," Szulik said.

In August, Red Hat sued SCO over the matter. Red Hat is seeking a declaratory judgment that would rule SCO's claims regarding copyright infringement are untrue.

Robert McMillan writes for IDG News Service

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