Red Hat Inc. (RHT, Financial) filed Quarterly Report for the period ended 2008-11-30.
Red Hat Inc. is a leading developer and provider of open source software and services including the Red Hat Linux operating system. Unlike proprietary software open source software has publicly available source code and can be copied modified and distributed with minimal restrictions. The web site REDHAT.COM is a leading online source of information and news about open source software and one of the largest online communities of open source software users and developers. Red Hat Inc. has a market cap of $2.52 billion; its shares were traded at around $15.46 with a P/E ratio of 27.8 and P/S ratio of 4.81. Red Hat Inc. had an annual average earning growth of 87.8% over the past 5 years.
Revenue by geography. We operate our business in three geographic regions: the Americas (U.S., Latin America and Canada); EMEA (Europe, Middle East and Africa); and Asia Pacific (principally Japan, Singapore, India, Australia, South Korea and China). For the three months ended November 30, 2008, approximately $66.5 million or 40.2% of our revenue was generated outside the United States compared to approximately $53.6 million or 39.6% for the three months ended November 30, 2007. Our international operations are expected to continue increasing as our international sales force and channels become more mature and as we enter new locations or expand our presence in existing locations. As of November 30, 2008, we had offices in more than 65 locations throughout the world.
Gross profit margin. As a result of changes in product mix, gross profit margin decreased slightly to 83.9% for the three months ended November 30, 2008 from 84.5% for the same period ended November 30, 2007. Training and services revenue increased as a percentage of total revenue to 18.1% for the three months ended November 30, 2008 from 14.5% for the same period ended November 30, 2007 as we continue to invest in our services business. Gross profit margin on services increased to 40.5% for the three months ended November 30, 2008 from 34.7% for the same period ended November 30, 2007. Additionally, gross profit margin on subscriptions continued to increase, growing to 93.5% for the three months ended November 30, 2008 from 93.0% for the three months ended November 30, 2007.
Income from operations. Operating income was 12.7% and 14.4% of total revenue for the three months ended November 30, 2008 and November 30, 2007, respectively. The decrease in operating income as a percentage of revenue is a result of both an increase in operating expenses as a percentage of total revenue and a slight decrease in gross profit margin as a result of changes in product mix, described above. Overall operating expenses as a percentage of revenue increased slightly to 71.3% for the three months ended November 30, 2008 from 70.2% for the three months ended November 30, 2007 due primarily to additional research and development expenses related to Qumranet. Research and development expenses as a percentage of revenue increased to 20.9% for the three months ended November 30, 2008 from 19.2% for the three months ended November 30, 2007.
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Gurus buys and sells of RHT
10-year financial history of RHT.
Insider buys/sells of RHT.
Red Hat Inc. is a leading developer and provider of open source software and services including the Red Hat Linux operating system. Unlike proprietary software open source software has publicly available source code and can be copied modified and distributed with minimal restrictions. The web site REDHAT.COM is a leading online source of information and news about open source software and one of the largest online communities of open source software users and developers. Red Hat Inc. has a market cap of $2.52 billion; its shares were traded at around $15.46 with a P/E ratio of 27.8 and P/S ratio of 4.81. Red Hat Inc. had an annual average earning growth of 87.8% over the past 5 years.
Highlight of Business Operations:
Revenue. For the three months ended November 30, 2008, total revenue increased 22.1% or $30.0 million to $165.3 million from $135.4 million for the three months ended November 30, 2007. Subscription revenue increased 17.0% or $19.7 million, driven primarily by additional subscriptions related to our principal RHEL technologies, which have gained broader market acceptance in mission critical areas of computing, and our international expansion. The increase is, in part, a result of the continued migration of enterprises in industries such as telecommunications, government and financial services to our open source platform from a proprietary Unix platform. Training and services revenue increased by 52.1% or $10.2 million, driven primarily by revenue from professional services delivered by Amentra, a business we acquired in March 2008.Revenue by geography. We operate our business in three geographic regions: the Americas (U.S., Latin America and Canada); EMEA (Europe, Middle East and Africa); and Asia Pacific (principally Japan, Singapore, India, Australia, South Korea and China). For the three months ended November 30, 2008, approximately $66.5 million or 40.2% of our revenue was generated outside the United States compared to approximately $53.6 million or 39.6% for the three months ended November 30, 2007. Our international operations are expected to continue increasing as our international sales force and channels become more mature and as we enter new locations or expand our presence in existing locations. As of November 30, 2008, we had offices in more than 65 locations throughout the world.
Gross profit margin. As a result of changes in product mix, gross profit margin decreased slightly to 83.9% for the three months ended November 30, 2008 from 84.5% for the same period ended November 30, 2007. Training and services revenue increased as a percentage of total revenue to 18.1% for the three months ended November 30, 2008 from 14.5% for the same period ended November 30, 2007 as we continue to invest in our services business. Gross profit margin on services increased to 40.5% for the three months ended November 30, 2008 from 34.7% for the same period ended November 30, 2007. Additionally, gross profit margin on subscriptions continued to increase, growing to 93.5% for the three months ended November 30, 2008 from 93.0% for the three months ended November 30, 2007.
Income from operations. Operating income was 12.7% and 14.4% of total revenue for the three months ended November 30, 2008 and November 30, 2007, respectively. The decrease in operating income as a percentage of revenue is a result of both an increase in operating expenses as a percentage of total revenue and a slight decrease in gross profit margin as a result of changes in product mix, described above. Overall operating expenses as a percentage of revenue increased slightly to 71.3% for the three months ended November 30, 2008 from 70.2% for the three months ended November 30, 2007 due primarily to additional research and development expenses related to Qumranet. Research and development expenses as a percentage of revenue increased to 20.9% for the three months ended November 30, 2008 from 19.2% for the three months ended November 30, 2007.
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Gurus who own RHT
RHT is in the portfolios of Bill Miller. More on RHT:Gurus buys and sells of RHT
10-year financial history of RHT.
Insider buys/sells of RHT.
