Server Monitoring Authors: Yeshim Deniz, Liz McMillan, Pat Romanski, Carmen Gonzalez, Ken Schwaber

Related Topics: Server Monitoring, Linux Containers, Open Source Cloud, @CloudExpo

Server Monitoring: Article

Red Hat Revenues Jump 20%

Red Hat turned in revenues of $219.8 million, up 20% year-over-year, for the summer quarter ended August 31

While the nearest other never-as-successful commercial Linux operation contemplates getting sold or some other fate, Red Hat Wednesday turned in revenues of $219.8 million, up 20% year-over-year, for the summer quarter ended August 31 although currency took a toll.

Not quite the $212 million the market hoped for but apparently good enough since the Hat's stock rose slightly after-hours after a dip during business hours.

The company raised its guidance for the full year to revenues of $877 million-$885 million, up from $835 million-$850 million, earning 76 cents-77 cents non-GAAP, up 22%-24%. RHEL6 is coming out later this year.

Subscription revenue in the quarter, 85% of the total, was $186.2 million, up 19%.

Non-GAAP earnings were 19 cents versus the Street's guess of 18 cents or $23.7 million, 12 cents a share, after deductions against 15 cents, or $28.9 million, last year. GAAP operating income for the second quarter was $34.1 million, up 24%.

Red Hat said it saw the "best billings growth rate in two years."

It's got deferred revenues worth $649.6 million, up 12%, and $1.05 billion in the bank.

It attributed the results to new project spending, expansion, cross-selling and strong renewals in its top accounts. The top 25 accounts up for renewal in the quarter re-upped at the rate of 120%. Twelve of the deals were worth at least a million dollars with one at $5 million and a third of all of them including some middleware. Another third included services. It said JBoss middleware should grow twice as fast as the rest of the business. Middleware and OS decision makers are the same/

Red Hat said its performance was broad-based across all geographies.

It's exploiting the cloud phenomenon with its new Cloud Foundations portfolio and claims some early deal activity, including its first private cloud management deal over a million dollars." It shrugged off any competition from Oracle and its Red Hat-based Unbreakable Linux.

In response to its numbers Red Hat stock shot up 9% Thursday to close at $40.07.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

IoT & Smart Cities Stories
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...