Red Hat continues to demonstrate its dominance of the enterprise Linux market. The company reported a blow-out third quarter, with total revenue of $135.4 million, an increase of 28% from the year ago quarter and 6% from the prior quarter. Subscription revenue was $115.7 million, up 30% year-over-year and 6% sequentially.
The company also boosted its profitability, with net income for the quarter at $20.3 million, or $0.10 per diluted share, compared with $18.2 million, or $0.09 per diluted share, for the prior quarter and $14.6 million, or $0.07 per diluted share, in the year ago quarter. Red Hat continues to exceed expectations, but perhaps because analysts continue to foolishly second guess the company (presumably because few of the analysts really understand open source).
Szulik talked up the progress of RHEL in the quarter (e.g., ), but also emphasized the growth of the JBoss business:
All good (though I would have liked to hear the JBoss numbers, given all the speculation about JBoss bringing Red Hat down). Red Hat is clearly the leader in open-source software. But I just can't shake my concern that Szulik's departure will hurt the company's morale and its fighting spirit.