* Sees 2013 revenue $1.32 bln-$1.33 bln
* Second-quarter adj earnings $0.28/share vs est $0.29
* Second-quarter rev $322.6 mln vs est $322.1 mln
* Shares down 2 pct aftermarket
Sept 24 Red Hat Inc, the world's largest
distributor of Linux operating software, reported a
lower-than-expected adjusted profit as costs rose, and lowered
the top end of its full-year revenue outlook on slow growth in
its services business.
The company, which sells subscriptions to upgrades, bug
fixes and helpdesk support for its business software and the
widely used Linux operating system, expects full-year revenue of
$1.32 billion to $1.33 billion. It had previously forecast
revenue of up to $$1.34 billion.
Its adjusted earnings forecast remained unchanged at $1.16
to $1.20 per share.
Analysts were expecting full-year revenue of $1.33 billion
and earnings of $1.19 per share, according to Thomson Reuters
"While our business momentum in the underlying demand trend
for our subscriptions remain strong, we do expect our services
business to continue with single-digit growth for a while
longer," Chief Executive Jim Whitehurst said on a conference
The company got 14 percent of its revenue from training and
services last year.
Net income fell to $35 million, or 18 cents per share, in
the second quarter, from $40 million, or 20 cents per share, a
Excluding items, the company earned 28 cents per share.
Revenue rose 15 percent to $322.6 million.
Analysts on average had expected earnings of 29 cents per
share on revenue of $322.1 million.
Red Hat's subscription revenue rose 17 percent to $278.8
The company reported billings, which is revenue and change
in deferred revenue, of $349 million.
It generates about $1 billion annually from subscriptions to
the Linux operating system, which competes with Microsoft Corp's
Operating expenses rose 23 percent to $224.7 million,
including investment into the company's nascent storage
Raleigh, North Carolina-based Red Hat's shares were down 2
percent after closing at $57.54 on the New York Stock Exchange