Red Hat reports first quarter 2013 revenue of $363 million, up 15 percent year-over-year

Infotech Lead America: Open source solutions provider Red Hat reported an increase of 15 percent in its total revenue to $363 million for the first quarter ended May 31, 2013, from the year ago quarter.

The increase in revenue is mainly driven by the growing customer demand for open source technologies.

Subscription revenue for the quarter was $316 million, up 16 percent in U.S. dollars year-over-year, or 18 percent measured in constant currency.

Net income for the quarter was $40 million, compared with $37 million in the year ago quarter. The non-GAAP net income for the quarter was $62 million as compared to $58 million in the year ago quarter.

“The first quarter was a solid start to Fiscal 2014, with both revenue and profitability coming in above the high-end of our guidance. 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 data center,” Whitehurst added.

During the first quarter Red Hat delivered solid growth in total revenue and subscription revenue. In addition, quarterly operating cash flow grew to a record $142 million, said Charlie Peters, executive vice president and chief financial officer of Red Hat.

The company also continued investments in its 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, Peters added.

Continuing its focus on delivering high-performing open virtualization solutions, Red Hat recently announced the availability of Red Hat Enterprise Virtualization 3.2, its open cloud offerings, with fully supported Storage Live Migration and a new third-party plug-in framework.

As part of this, Red Hat has also collaborated with several companies to integrate their solutions with Red Hat Enterprise Virtualization via the new plug-in, including high availability and disaster recovery solutions from NetApp, Symantec, and Insight Control from HP.

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