| Sept 23
Sept 23 Red Hat Inc, the world's largest
commercial distributor of the Linux operating system, reported a
slower growth in billings than analysts had expected.
The company's shares fell nearly 8 percent after markets
Red Hat's billing proxy, which the company defines as total
revenue combined with the change in deferred revenue, grew 8
percent to $376 million in the second quarter.
Analysts, however, had expected billings to grow 14 percent.
"This is now the third quarter in a row that they've missed
on deferred revenue," said Susquehanna Financial Group LLC
analyst J. Derrick Wood.
Red Hat's ability to sustain billings growth at a mid-teen
percentage rate was now under question, he added.
Overall foreign exchange rates hit Red Hat's revenue and
billings growth in the second quarter, Chief Financial Officer
Charlie Peters said on a post-earnings conference call.
Last year, regions outside the United States accounted for
43.3 percent of Red Hat's revenue.
The company said it expects third-quarter adjusted earnings
of 34-35 cents per share on revenue of about $381-$384 million.
Analysts on average were expecting earnings of 34 cents per
share on revenue of $391.5 million, according to Thomson Reuters
Linux competes with Microsoft Corp's Windows
operating systems in corporate markets, especially for use in
Net income rose to $41 million, or 21 cents per share, in
the second quarter compared with $35.0 million, or 18 cents per
share, a year earlier.
Excluding items, the company reported earnings of 35 cents
per share. Revenue grew 16 percent to $374.4 million.
Analysts had expected adjusted earnings of 33 cents per
share on revenue of $372.1 million.
Red Hat shares closed at $52.93 on the New York Stock
Exchange on Monday.
(Reporting by Neha Alawadhi in Bangalore; Editing by Joyjeet