Red Hat beats estimates, raises guidance

No matter how well or lousy other Linux companies may be doing, it would appear that Red Hat is doing A-OK. From the looks of things, they are out doing what people had initially expected from their financial performance.

Linux seller Red Hat reported on Wednesday that it had outpaced analysts’ revenue and profit expectations for its most recent quarter, suggesting they raise future financial projections and boasting of gains against competitors.

The company’s revenue increased 42 percent to $65.7 million for its fiscal second quarter of 2006, which ended Aug. 31. Net income increased 35 percent to $16.7 million, or 9 cents per share.

Analysts surveyed by First Call had expected the Raleigh, N.C.-based company to report net income of 7 cents per share on revenue of $64.9 million for the quarter.

In a conference call, Chief Executive Matthew Szulik said the company’s financial results “were strong across all key metrics,” including billing, revenue growth, profit margin expansion, net income and cash flow. [Read the rest]