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  Red Hat reports revenue increase
Time: 04:08 EST/09:08 GMT | News Source: CNET | Posted By: Alex Harris

Linux seller Red Hat reported $3.3 million in net income on revenue that grew 36 percent to $28.8 million for its most recent quarter. The results for Red Hat's fiscal second quarter, which ended Aug. 31, were enough to push the Raleigh, N.C., company to a net income of 2 cents per share, a penny above the expectations of analysts surveyed by First Call.

During the quarter, Red Hat reported 2,300 new subscriptions to its Red Hat Enterprise Linux product, which combines a version of the Linux operating system and higher-level software with service and access to the Red Hat Network for updates. The company now has about 26,000 subscribers for the software. Red Hat's software runs chiefly on Intel-based servers, though the company's coming Red Hat Enterprise Linux 3 will run also on IBM mainframes and on systems built on Intel's new Itanium processor. Red Hat is taking on companies such as Sun Microsystems that sell servers with Unix, on which Linux is based, as well as Microsoft.

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#1 By 3339 (66.219.95.6) at 9/19/2003 1:43:29 PM
Personally, I appreciate it... I had no freaking clue that Microsoft was raking in billions in revenue.

#2 By 3339 (66.219.95.6) at 9/19/2003 2:12:04 PM
-x- that was actually a whole lot of sarcasm. I could care less what parker posts but we all know what kind of revenue MS has... and anyone who is rational doesn't need to and won't compare everything to MS. The irrational do not realize that MS is by no means a yardstick for success; success can easily be accomplished without having 3-6 billion in rev a quarter and over 40 billion in cash--so what value is there in the comparison.

On the other hand, softies here will try to characterize Red Hat as if they are sinking further and further into the red and are on the verge of collapse... well, sorry, they are now profitable and beating expectations.

#3 By 3339 (66.219.95.6) at 9/19/2003 4:33:11 PM
parker, subscriptions do not denote individual installs but rather user agreements to access the updates and services. So 25 new customers a day could be rather substantial business.

#4 By 3653 (209.149.57.116) at 9/19/2003 10:52:20 PM
doesnt look like red hat is gonna get much $ out of ATMs...

http://www.wired.com/news/technology/0,1282,60497,00.html

rRmember when "all ATMs will move to Linux from OS/2" was a foregone conclusion?

#5 By 9589 (66.57.152.17) at 9/19/2003 10:57:25 PM
#2, I question how IDC gets their numbers. We are a large Fortune 100 company and we have never bought a Microsoft server OS with an X86 server regardless of vendor. The reason is it is just too expensive. We have a separate enterprise license agreement with Microsoft for all of their products (some 6500 Intel based servers running either Windows 2000 or now Windows Server 2003 and counting). I suspect that it is like that with most medium to large businesses.

On the other hand, when we have bought HP w/HP=UX or Sun w/ Solaris the OS is bundled with the hardware with a no choice proposition including the cost of "maintenance" fees for usually three years at an annual cost nearly equal to the original server license cost itself.

The only Linux that comes in the door is already configured on such devices as ISS's intrusion detection or Symantec's firewall offerings. We don't buy the "maintenance" packages since we update the OS ourselves as needed. I've never asked these vendors if they have bought the Linux licenses or not for their offerings. I suspect that they just download the Internet version(s) free and run with it. Given Red Hat's pififul numbers, this must be the case for the majority of vendors that bundle their products with it.

By the way, we haven't seen any impact or mention from our bundling vendors regarding the SCO lawsuit. However, our lawyers have formally asked these vendors if they will indemnify the open source operating system. We haven't gotten a reply, yet. Whatever the answer, it is sure to be interesting.

#6 By 1845 (12.209.152.69) at 9/22/2003 1:32:10 AM
Regarding offtopicness, the real question is what the heck does Red Hat's revenue have to do with The Most Activated Windows Resource? Oh yeah, nothing. Whether the readership is interested in it or not, it is still off topic for a Windows news site.

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