Red Hat (Photo : Reuters)
Boosted by this quarters surging growth in subscription, Red Hat Incorporated, the world's largest commercial distributor of Linux operating system has raised its profit forecast. Charles Peters, Red Hat's current Chief Financial Officer stated that he will be leaving his post and will be retiring in the next 12 months.
The multinational software company with tie-ins to IBM, Dell Inc. and Alcatel-Lucent, reported shares have seen an increase of up to 10.6%. Report shows that Red Hat has renewed its top 25 deals for the year. Red Hats has seen this increase in sales after this years increased demand on servers, data centers and cloud computing. The company is dealing primarily in software solutions for data-centers and creating operating systems for virtual computers and cloud computing.
The company predicts that its shares will increase from last years $1.53-$1.55 to a projected price of $1.57-1.58 per share this coming year. Analysts agree with this figure and are expecting an average of $1.55 for the year to come.
For four consecutive years, the company has projected and a total of 40-41 cents per share increase and an annual revenue of $456-$459 million. Analysts expect revenue of $459.2 million and share prices increasing an average of 41 cents. Company's total revenue increased from $455.9 million this year from $396.5 million last year. Revenue earned through subscription, which is the company's main source of income, increases to $394.7 million a growth of almost 15.1%. However, Red Hats annual revenue dropped almost $4.1 million this year. Previous year's income was reported to be $52 million, higher compared to this year's annual income of $47.9 million.
Red Hat is the largest corporate provider to Linux. As a software solutions company, it helps creates and maintain operating system platforms, software applications, management products, training and consulting service among others. It is also publicly traded in the New York Stock Exchange.
