Linux sales boost Red Hat profit

Red Hat Inc. said it swung to a profit in its latest quarter as rising numbers of subscriptions to the company’s Linux software
helped revenue rise 43 per cent .

Red Hat said it posted fiscal fourth-quarter net income of $5-million (U.S.) or 3 cents a share for the period ended Feb. 29.

That compares with the prior year’s fourth-quarter loss of $273,000, which was break-even on a per-share basis.

Red Hat said its fourth-quarter revenue rose to $37-million from $25.9-million. The Raleigh-based company’s top line was bolstered by subscription
revenue, which jumped 79 per cent to $25.9-million as the company added 87,000 new Linux subscriptions.