Linux software company Red Hat forged ahead with a 20 percent jump in revenue in the latest quarter.
The Raleigh-based company reported after the markets closed this afternoon that it posted revenue of $209.1 million for the quarter that ended May 31, ahead of the $203 million anticipated by analysts.
Net income was $35.6 million, or 18 cents per share, after adjusting for stock compensation and amortization. That was in line with expectations and an improvement on the $28.7 million the company earned a year ago.
"We had a strong start to our fiscal year," CEO Jim Whitehurst said in a prepared statement. "We executed well and achieved a significant increase in the number of large deals booked year-over-year, including several with an initial consulting component which we believe is a positive indicator of new project spending and future subscription billings."
Red Hut's Linux computer-operating software is available for free, but it makes money by charging customers for maintenance and support. Customers end up paying less than they pay for competing software.
The company has more than 3,200 employees worldwide and 650 in Raleigh.
Earlier today, Red Hat shares closed at $30.86, down 72 cents. The company's shares have remained flat so far this year.
