Red Hat, the provider of Linux-based software for enterprises, not only met earnings expectations and beat revenue expectations for its most recent fiscal quarter,
executives say the story behind the numbers is even more bullish for the company:
"During the second quarter, Red Hat's financial performance was strong across all of our key metrics. We delivered double digit growth in revenue and deferred revenue, expanded our non-GAAP operating margins and generated strong cash flow from operations," stated Charlie Peters, executive vice president and CFO of Red Hat. "We are particularly pleased with the growth of the current portion of deferred revenue combined with the lengthening of our average subscription duration."
Overall revenue for Red Hat was up double digits, by 12 percent, with subscription revenue up by 15 percent. With other segments of IT, like the PC space, happy to be flat on a year-over-year basis, that's saying something.
Red Hat is seeing, from its installed base of customers that enterprises have long ago moved beyond the "try it before you buy it" phase with Linux and now it appears they're in for a much longer haul. This could have significant repercussions throughout IT, as corporations and even governments begin the process of long-term planning after the rebound from the economic downturn.
