Red Hat's 1Q net up on higher subscription revenue

Associated Press

RALEIGH, N.C. (AP) — Red Hat Inc., the company behind the Linux open-source operating system, said Wednesday that net income in its fiscal first-quarter grew 8 percent as subscription revenue increased.

Shares added $2.78, or 6 percent, to $49 in after-hours trading. Red Hat's stock has dropped 13 percent in 2013 and closed down 41 cents at $46.22 Wednesday.

The Raleigh, N.C. company earned $40.4 million, or 21 cents per share, for the period that ended May 31. That is compared with $37.5 million, or 19 cents per share, earned in the same quarter last year.

Excluding costs for paying employees in stock and other one-time items, per-share earnings rose to 32 cents from 30 cents.

Red Hat's sales increased 15 percent to $363.3 from $314.7 million as subscription revenue grew 16 percent.

Analysts polled by FactSet, on average, were anticipating earnings of 31 cents per share with revenue of $359.7 million.

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