eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.
The first quarter of Red Hat Inc.s 2007 fiscal year was a great one. But, because it fell short of analysts expectations, the companys stock fell in after-hours trading.
The total revenue for the quarter, which was reported on June 28, was $84.0 million, an increase of 38 percent from the year ago quarter and 7 percent from the prior quarter.
Subscription revenue from RHEL (Red Hat Enterprise Linux) was $71.5 million, up 45 percent year-over-year and 7 percent sequentially.
The company reported operating income of $12.6 million for the quarter, including $7.6 million of non-cash stock compensation expense related to the implementation of FAS123R (Financial Accounting Series).
FAS123R is a new set of accounting regulations that requires the expensing of non-cash stock option grants and other equity awards.
GAAP (Generally Accepted Accounting Principles) net income for the quarter was $13.8 million, or 7 cents per share.
Without the FAS123R expenses, the net income would have been 14 cents per share. Analysts had expected the stock to deliver 9 cents a share.
At quarter end, the companys total deferred revenue balance was $254.7 million, an increase of 61 percent on a year-over-year basis and 14 percent sequentially.
The quarterly gross margin improved to 84 percent from 79 percent in the year-ago period. The Raleigh, N.C. company also had a total of $1.1 billion in cash and investments as of the end of May.