Red Hat Slammed as Revenue Falls Short (Update 1)
NEW YORK (TheStreet) -- Red Hat
The Raleigh, N.C.-based open source software company earned 36 cents a share on $348 million in revenue, an increase of 17% year-over-year. Analysts polled by Thomson Reuters were looking for earnings of 30 cents a share on $349.42 million in revenue.
The company noted that subscription revenue, the majority of its business, was $3030 million for the quarter, up 19% year-over-year. Operating cash flow for the quarter was $137 million, up 7% annually. Deferred revenue, a key operating metric, exceeded $1 billion dollars, up 15% year-over-year.
"For FY13, the growth drivers in our business remained intact, driving record annual revenue, billings proxy and total backlog up 17%, 14% and over 19% year-over-year, respectively. Within total backlog, the value of customer contracts to be billed in the future and not reflected in our financial statements increased to over $280 million, or up over 40%, as customers increased their commitments to Red Hat technologies in the data center," said Jim Whitehurst, President and CEO in the press release.
Red Hat shares closed the session higher, up 1.46% to $49.97. The stock is moving lower in extended-hours trading, down 7.04% to $46.45 according to Nasdaq.com.
--Written by Chris Ciaccia in New York
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