Company says it is in growth mode
Last modified on Friday, 28 March 2008 15:17
Software manufacturer, Red Hat, Inc. issued a revenue report that beat Wall Street forecasts. This piece of sunny news, among the other gloomy U.S. economic news, sent Red Hat’s stock up over seven percent.
Red Hat indicated that its software is poised for strong growth because of its attention to cost effectiveness. Red Hat provides open source software solutions to the enterprise market, including its core enterprise operating system platform, Red Hat Enterprise Linux. Red Hat distributes its software at no charge, but makes its money from customers through subscription agreements for upgrades, and help desk support.
Red Hat estimated its revenue will be between $665 million and $680 million in its current fiscal year, which began March 1st, an increase of 27 percent over its last fiscal year. In comparison to this good news, Oracle fell short of its revenue goals, and blamed the slowing U.S. economy.