Linux software maker Red Hat Inc (RHT), Thursday reported a better-than-expected increase in second-quarter profit, helped by a 19 percent rise in revenue.
The results come amid strong demand for open source technologies, combined with Red Hat's value proposition and market leadership position, said CEO Jim Whitehurst.
Red Hat, based in Raleigh, North Carolina, posted second-quarter net earnings of $47 million or $0.25 per share, compared with $41 million or $0.21 per share last year.
Results for the quarter included non-cash share-based compensation expense of $36.6 million and amortization expense of $7 million.
Excluding items, adjusted earnings for the quarter were $0.41 per share, compared with $0.35 per share a year ago.
On average, 31 analysts polled by Thomson Reuters estimated earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the second quarter was up 19 percent at $446 million, compared with $374.4 million in the prior year. Twenty-eight analysts had a consensus revenue estimate of $437 million for the quarter.
On an adjusted basis, gross margin for the quarter fell 40 basis points from a year ago to 86.7 percent while operating margin slid 80 basis points to 24.4 percent.
Earlier today, Red Hat agreed to buy FeedHenry, a privately held provider of enterprise mobile application platform for about 63.5 million euros in cash, subject to certain adjustments at closing. The deal is expected to close in third-quarter fiscal year 2015.
Red Hat said the deal expands its portfolio of application development, integration, and Platform-as-a-Service solutions, enabling it to support mobile application development in public and private environments.
Red Hat stock closed Thursday at $60.66, down $0.42 or 0.69%, on a volume of 2 million shares on the NYSE. In after hours, the stock dropped $1.78 or 2.93%.
by RTT Staff Writer
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