Red Hat said its acquisition of the JBoss open-source Java server software would mean $22 million to $27 million in new revenue from June 2, 2006, when the acquisition was completed, and February 27, 2007, when the Linux seller's quarter ends. The company's quarterly report, released Tuesday, indicates that the company will just make that goal.
In the most recent quarter, JBoss generated $7.8 million for the company, an 11 percent increase over the $7 million from the first quarter in the Red Hat tent. "Extrapolating these numbers puts JBoss on track for about $22 million to $23 million in revenue for the nine months ending February 28," said Jefferies and Co. securities analyst Katherine Egbert.
JBoss is a significant expansion of Red Hat's software business, which before the acquisition had chiefly been for the lower-level Linux operating system. Red Hat spent $329 million for the company. If the JBoss division meets certain financial goals in calendar years 2006 and 2007, Red Hat will pay about $70 million more.