Red Hat Drops
Costs related to Gluster, RH's bought-in storage product, increased expenses, as did two small acquisitions
By: Maureen O'Gara
Sep. 25, 2012 08:00 AM
Red Hat, still feeding for the moment off the shift from Unix to Linux, fell better than 4.8% evening out at $55.90 after-hours Monday when it said its fiscal Q2 earnings were down year-on-year because of investments and acquisition-related expenses.
It cleared 28 cents a share, when 29 cents was expected, although sales were up 15% to $322.6 million.
Subscription revenue was up 17% to $279 million. Billings grew 15% lagging the 16% reported in Q1. It did $43.8 million on training and other services, up 1.8%.
Red Hat said costs related to Gluster, its bought-in storage product, increased expenses, as did two small acquisitions.
Operating expenses were $224.7 million, up more than 23%. The acquisitions reduced EPS by a penny.
Deferred revenue was up 25% to $813 million.
Red Hat said its fiscal Q3 revenue would be between$336 million and $339 million, with earnings per share of 28 cents to 29 cents. It was supposed to do 30 cents on$340.1 million. It foresees full-year revenue of $1.32 billion to $1.33 billion, with an EPS of $1.15 to $1.17, a bit lower than consensus of $340 million and 30 cents this quarter and $1.33 billion and $1.19 a share for the full year.
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