Red Hat Posts Loss, but Tops Expectations - TheStreet

Red Hat Posts Loss, but Tops Expectations

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Red Hat (RHAT) , noting that its gross profit margins improved, reported an adjusted fiscal second-quarter loss of 1 cent a share, just beating expectations.

Analysts had expected that the Research Triangle Park, N.C.-based company would post a loss of 2 cents a share for the quarter ended Aug. 31, according to

I/B/E/S

.

The provider of Linux open source software and services said revenue reached $18.5 million, a 76% increase over the year-ago $10.5 million.

The company said it posted an adjusted loss of $1.9 million, or 1 cent a share, compared to an adjusted loss a year ago of $4.3 million, or 6 cents a share. But it had a net loss of $15.7 million, or 10 cents a share, compared with a net loss of $4.8 million, or 7 cents a share, a year earlier. The reason for the adjustments wasn't immediately clear.

Gross profit margins increased to 58% for the most recent quarter, 3.8 percentage points better than the previous quarter.

Red Hat climbed Thursday ahead of its earnings report, rising $1.13, or 4.7%, to $25.25 a share.