Red Hat (RHT) Posts Q3 EPS In Line; Revs Up 21% on Strong Subscriptions

December 21, 2010 4:15 PM EST
Red Hat Inc. (NYSE: RHT) said Tuesday that its third-quarter net income rose 26 percent on strong market demand and sales execution, but shares are down in aftermarket trade.

The open source software solutions provider reported third-quarter earnings of 20 cents per share, in line with the analyst estimate.

Revenue for the company rose 21 percent to $236 million in the three month period ended November 30, 2010, beating the market consensus of $227.27 million.

Subscription revenue for Red Hat was up 21 percent year-over-year to $198.8 million.

“Strong market demand and sales execution, combined with a compelling value proposition, led to organic billings growth of over 20%, or $262 million. Also in Q3, we were particularly proud that Red Hat was recognized by CIOs for the seventh consecutive year as one of the top IT vendors delivering value according to CIO Insight Magazine Vendor Value survey.” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat.

Shares of Red Hat are down 2.05 percent to $46.90 in aftermarket movement on Tuesday.

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