Red Hat posts 15 percent net revenues in Q1
Red Hat, Inc., today announced financial results for its fiscal year 2014 first quarter ended May 31, 2013. The total revenue for the quarter was $363 million, an increase of 15 percent from the year ago quarter, or 17 percent measured in constant currency.
The GAAP operating income for the first quarter was $57 million, up 11 percent year-over-year. After adjusting for stock compensation, amortization expenses and certain facility exit costs, as detailed in the tables below, non-GAAP operating income for the first quarter was $87 million, up 7 percent year-over-year. For the first quarter, GAAP operating margin was 15.6 percent and non-GAAP operating margin was 23.9 percent.
Net income for the quarter was $40 million, or $0.21 per diluted share, compared with $37 million, or $0.19 per diluted share, in the year ago quarter. After adjusting for stock compensation, amortization expenses and certain facility exit costs, as detailed in the tables below, non-GAAP net income for the quarter was $62 million, or $0.32 per diluted share, as compared to $58 million, or $0.30 per diluted share, in the year ago quarter.
Operating cash flow was $142 million for the first quarter, as compared to $124 million in the year ago quarter. At quarter end, the company’s total deferred revenue balance was $1.06 billion, an increase of 16 percent on a year-over-year basis. Total cash, cash equivalents and investments as of May 31, 2013 was $1.22 billion after repurchasing approximately $179 million, or approximately 3.6 million shares, of common stock in the first quarter.
“We delivered mid-teens revenue growth driven by customer demand for innovative open source technologies based on a high-value subscription model,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. “In Q1, we continued to execute against our strategy of significantly expanding our addressable market in the new cloud-centric datacenter.”
“During the first quarter, we delivered solid growth in total revenue and subscription revenue. In addition, quarterly operating cash flow grew to a record $142 million. At the same time, we continued to invest in our long-term growth initiatives around the open hybrid cloud to deliver new technologies, in particular by ramping-up spending in R&D for cloud management, Red Hat Enterprise Linux OpenStack Platform and Red Hat’s OpenShift platform-as-a-service technologies,” stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat.
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