Red Hat cashes in on rise of Linux

Red Hat has reported a profit of $14m for its 2004 financial year. Last year the company recorded a $6.6m loss.

Red Hat has reported a profit of $14m for its 2004 financial year. Last year the company recorded a $6.6m loss.

For year, which ended 29 February, the company reported revenues of $126.1m, an increase of 39% as compared to revenues of $90.9m the previous year.

Red Hat also reported more than 160,000 cumulative sales of Red Hat Enterprise Linux technologies.

The company announced 87,000 new subscriptions for the fourth quarter, $32m in cash flow from operations, and a net income of $5.m compared with $4.1m the previous quarter. Results were merely break-even for the same period the previous year.

Red Hat ended the year with a cash balance of $941m - an increase of $649m.

Renewal rates for sales of Red Hat Enterprise Linux remained strong at approximately 90%. Gross margins increased to record levels, with blended gross margins at 76% and gross margins of Enterprise subscription technologies at 91%.

Operating profit, before stock-based compensation, increased to $4.6m, or 12% of total revenue.

Written by LinuxWorld staff

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