NEW YORK (TheStreet) -- Shares of Red Hat Inc (RHT) were down 1.67% to $76.95 in after-hours trading Thursday, following the release of the software company's first quarter earnings results after the closing bell.

For the first quarter, Red Hat earned 44 cents per share on revenue of $481 million.

The company was expected to earn 41 cents per share on revenue of $472.59 million, according to analysts surveyed by Thomson Reuters.

In the same quarter of last year, the company earned 34 cents per share on sales of $423.75 million.

Subscription revenue for the first quarter was up 14% from a year ago to $425 million, or a 23% jump measured in constant currency.

Red Hat said it was helped by the increasing adoption of open-source software and its cloud-based products.

Raleigh, N.C.-based Red Hat is a provider of open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, middleware, storage and cloud technologies.

The company uses an open source development model that allows it to use the collective input from a global community of contributors to develop, maintain and enhance software.

Separately, TheStreet Ratings team rates RED HAT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate RED HAT INC (RHT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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