(In June 18 story, corrects paragraph 1 to say company raised
full-year revenue, not adjusted profit, forecast. Corrects
paragraph 5 to say company cut its full-year adjusted profit
forecast to $1.52-$1.54 per share, not raised it to $1.59-$1.61)
* 1st-qtr adjusted profit $0.34/shr vs est $0.33/shr
* Revenue up 17 pct
* Sees full-year revenue $1.76-$1.785 bln vs est $1.75 bln
* Shares up 4.5 pct in extended trading
By Soham Chatterjee
June 18 Red Hat Inc, the world's largest
commercial distributor of the Linux operating system, raised its
full-year revenue forecast, helped by strong growth in
Shares of Red Hat rose 4.5 percent in extended trading.
"... We are benefiting from an improved IT spending
environment for open source and cloud enabling technologies,"
Chief Executive Jim Whitehurst said on a conference call on
Whitehurst said Red Hat was able to renew all of the top 25
deals up for renewal in the first quarter ended May 31 and
signed a record number of deals worth a million dollars or more.
Red Hat cut its full-year adjusted profit forecast to
$1.52-$1.54 per share from $1.54-$1.56.
The company lifted its revenue forecast to $1.76-$1.785
billion from $1.73-$1.755 billion.
Analysts on average were expecting an adjusted profit of
$1.55 on revenue of $1.75 billion, according to Thomson Reuters
Red Hat is benefiting from higher enterprise demand for its
software used in data-centers, for cloud computing and to create
virtual computers within an operating system.
The company counts 90 percent of Fortune Global 500
companies as customers, including Amazon.com Inc, Dell
Inc and Alcatel-Lucent SA.
Red Hat - whose products competes with those of Microsoft
Corp and VMware Inc - is investing in
developing OpenStack open-source cloud software as companies
increasingly subscribe to storage, software and computing
services hosted on remote servers.
The company also said on Wednesday it was buying eNovance, a
provider of OpenStack-based cloud computing services, for $95
In April, Red Hat bought data-center storage software maker
Inktank for $175 million.
Red Hat's net income fell to $37.7 million, or 20 cents per
share, in the first quarter, from $40.4 million, or 21 cents per
share, a year earlier.
Excluding items, the company earned 34 cents per share
beating analysts' expectations of 33 cents per share.
Revenue rose 17 percent to $423.8 million, above
expectations of $414 million.
"Red Hat delivered solid first-quarter results as
subscription revenue, and more importantly, billings
outperformed expectations," Evercore Partners analyst Kirk
Materne told Reuters.
Billings rose 17 percent in the quarter ended May 31, above
analysts' expectations of growth of 15 percent.
Subscription revenue increased 16 percent to $372 million.
"Given that Red Hat's business can tend to be a little slow
in their first fiscal quarter, this would appear to be a really
solid start to fiscal year 2015," Materne said.
The company's shares were at $55.50 in extended trading
after closing at $53.10 on the New York Stock Exchange.
(Reporting by Soham Chatterjee in Bangalore; Editing by Maju