Red Hat Reports Fiscal Fourth Quarter and Fiscal Year 2008 Results
Red Hat Reports Fiscal Fourth Quarter and Fiscal Year 2008 Results Thursday March 27, 4:01 pm ET -- Annual Revenue up 31% from Prior Year -- Deferred Revenue up 40% from Prior Year -- Repurchased $66 Million of its Common Stock
RALEIGH, N.C.--(BUSINESS WIRE)--Red Hat, Inc. (NYSE: RHT - News), the world's leading provider of open source solutions, today announced financial results for its fiscal fourth quarter and fiscal year ended February 29, 2008.
“During the fourth quarter, I spent a significant amount of time meeting with customers, partners, employees and thought leaders from the open source community. The momentum of open source solutions is strong and growing, and we believe there is a significant opportunity to expand our presence with existing customers and the many companies and industries that have only just begun to adopt open source solutions in a meaningful way,“ stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. “In addition, feedback I received supports why Red Hat has been rated the number one enterprise software vendor for value by CIO Insight Magazine for four consecutive years. As a result of these factors, we are optimistic about the growth outlook for the Linux market and Red Hat as we begin fiscal 2009.”
Total revenue for the quarter was $141.5 million, an increase of 27% from the year ago quarter and 5% from the prior quarter. Subscription revenue for the quarter was $121.9 million, up 27% year-over-year and 5% sequentially. For the full year, total revenue was $523.0 million, an increase of 31% over fiscal 2007 revenue, and subscription revenue was $449.8 million, up 32% from the prior year.
Net income for the quarter was $22.0 million, or $0.10 per diluted share, compared with $20.3 million, or $0.10 per diluted share, for the prior quarter and $20.5 million, or $0.10 per diluted share, in the year ago quarter. Non-GAAP adjusted net income for the quarter was $42.7 million, or $0.20 per diluted share, after adjusting for stock compensation and tax expense as detailed in the tables below. This compares to non-GAAP adjusted net income of $39.7 million, or $0.19 per diluted share in the prior quarter.
For the full year, net income was $76.7 million or $0.36 per diluted share, compared with $59.9 million or $.29 per diluted share in the prior year. Non-GAAP adjusted net income for the year was $152.9 million or $0.72 per diluted share, compared to $115.9 million and $0.56 per diluted share the year before.
Non-GAAP operating cash flow, as detailed in the tables below, totaled $71.6 million or approximately 50% of revenue for the quarter and $264.3 million for the full year. At year end, the company’s total deferred revenue balance was $472.9 million, an increase of 40% on a year-over-year basis and 12% sequentially. Total cash, cash equivalents and investments as of February 29, 2008 were $1.3 billion.
Other highlights include the following:
During the quarter, Red Hat repurchased approximately 3.7 million shares of its common stock for approximately $66 million. Red Hat Enterprise Linux 5 won SearchEnterpriseLinux.com’s 'Product of the Year' Gold for leadership in virtualization. Strong JBoss business growth and a record number of attendees and IT decision makers at JBoss World in February. Subsequent to the quarter close, Red Hat announced the acquisition of Amentra, a regional provider of systems integration and