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Red Hat Q3 results beats Street

Created on Monday, 19 December 2011 16:19

Category: Earnings

(Reuters) - Business software maker Red Hat Inc's (NYSE:RHT - News) quarterly results edged past market expectations as demand from corporate customers drove subscription revenue growth.

The world's largest distributor of the open-source Linux operating

system said September-November net income was $38.2 million, or 19 cents a share, compared with $26 million, or 13 cents a share, a year ago.

Excluding items, the company earned 28 cents a share, beating analysts' expectations of 26 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 23 percent to $290 million as subscription rose by more than a fifth. Analysts had expected revenue of $289.6 million.

Red Hat sells subscriptions to upgrades, bug fixes and helpdesk support for its business software, including the widely used Linux operating system.

Shares of the Raleigh, North Carolina-based company were trading at $41.40 in extended trade on Monday. They closed at $46.05 on the New York Stock Exchange.

(Reporting by Soham Chatterjee in Bangalore; Editing by Viraj Nair)

Courtesy Yahoo Financial News

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