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Red Hat net income down for year

RALEIGH, N.C. – Linux distributor Red Hat Inc. said it achieved net income of $59.9 million (all figures U.S. dollars) for the fiscal year ending Feb. 28, down from $79.7 million it had in the previous fiscal year.

Total revenue for the quarter just ended was $111.1 million, an increase of 41 per cent from the year ago quarter and five per cent up from the prior quarter. Subscription revenue was $95.9 million, up 44 per cent year-over-year and eight per cent sequentially.

For the full year, total revenue was $400.6 million, an increase of 44 per cent over fiscal 2006 revenue, and subscription revenue was $341.2 million, up 48 per cent from the prior year.

Net income for the quarter was $20.5 million or $0.10 per diluted share compared with $14.6 million or $0.07 per diluted share for the prior quarter. Non-GAAP adjusted net income for the quarter was $32.7 million, or $0.15 per diluted share, after adjusting for stock compensation and tax expense as detailed in the tables below. This compares to non-GAAP adjusted net income of $29.6 million, or $0.14 per diluted share in the prior quarter.

Non-GAAP operating cash flow totaled $56.4 million for the quarter and $217.5 million for the full year. At year end, the company’s total deferred revenue balance was $338.6 million, an increase of 52 per cent on a year-over-year basis and nine per cent sequentially.

The company said it added more than 10,000 net new customers in Q4 and more than 42,000 in FY 2007.

“We are pleased with our ability to continue to generate strong cash flow and improve margins while rolling out enhanced solutions, such as the Red Hat Application Stack and Red Hat Enterprise Linux 5.0, to spur future growth,” stated Charlie Peters, executive vice -president and chief financial officer.

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