Red Hat issues financial teaser
Published: 15 Jun 2004 16:55 BST
Red Hat on Tuesday announced expected earnings per share that are one cent better than analysts had forecast for its most recent quarter, citing growth in subscriptions to its Enterprise Linux software.
The guidance comes two days before the Linux maker is scheduled to announce financial results for the first quarter of fiscal year 2005 -- but one day after it announced a surprise resignation plan for CFO Kevin Thompson.
The resignation news sent Red Hat's stock down in after-hours trading on Monday. It recovered somewhat midday on Tuesday, with its price down $1.33, or 5.5 percent, to $22.97.
Red Hat said it expects to report net income of $4.7m using Generally Accepted Accounting Principles. On a non-GAAP basis, net income is $10m, or 5 cents per share, which surpasses the 4 cents per share average projected by analysts surveyed by First Call.
The company sold 98,000 subscriptions to Red Hat Enterprise Linux, an increase over the 87,000 subscriptions it said it sold three months earlier. The average price was $430 per subscription per year, a drop from the $455 of three months ago.
Of the subscriptions, 75,000 went to businesses and 23,000 went to a category that pays less: Web hosting companies and high-performance technical computing customers.
Red Hat said it will post full financial results on Thursday.
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