Red Hat Shares Slump Despite Profitable Results

By Friday, March 29, 2013 0 , Permalink 0

Though Red Hat’s revenues show an uptrend year-over-year, they were still less than Wall Street’s expected revenue of $349.4m. This led to a 7 per cent fall in the company’s share price. Profit for the present quarter is reported at $43 million as compared to $35 million earned in the previous quarter. As according to reports, the company has earned net income of total $201m and revenues of total $1.33 billion for the present year.

Jim Whitehurst, the Chief of Red Hat, while declaring the revenue results said that the company will continue to improve its production scale and operational efficiencies of RHEV, RHEL and JBOSS.  

As more and more corporate companies are turning towards cloud computing, the demand for Red Hat’s Linux software is increasing considerably. Today, Red Hat is the largest Linux Software seller in the world. However the higher operating costs have led to the operating margin for the present quarter drop to 24 per cent against last year’s 24 per cent.

On Wednesday, the share market closed with RHT shares trading at $49.97, up 1.06 per cent after witnessing around 9.59 per cent slump in after-hours trading.