Red Hat's second-quarter profit was less than expected

According to foreign media reports, the Red Hat Software Company (RedHat) released its second-quarter report on Monday. Earnings per share for the quarter were one cent lower than analyst expectations, the main reason is that the company's entry into the new market led to higher costs, but revenue for the quarter was $1.5 million higher than expected. However, Redhat's profit and revenue forecasts for the current quarter are also lower than analyst expectations. After the financial report was published, the company's share price fell by about 2.6%. Redhat's business revenue grew by 15%, down from 16% announced in the first quarter. The company's open-source software products Linux and

According to foreign media reports, Red Hat software released its second-quarter report on Monday. Earnings per share for the quarter were one cent lower than analyst expectations, the main reason is that the company's entry into the new market led to higher costs, but revenue for the quarter was $1.5 million higher than expected.

However, Redhat's profit and revenue forecasts for the current quarter are also lower than analyst expectations. After the financial report was published, the company's share price fell by about 2.6%.

Redhat's business revenue grew by 15%, down from 16% announced in the first quarter. The company's open-source software products Linux and service businesses help other companies adopt more cost-saving technologies, including cloud computing technologies.

William Blair & Co. Analyst Bhavan Suri pointed out that the revenue of RedHat is mostly from companies that have transformed from outdated Unix systems to Linux systems.

"Unix-to-Linux migration has always been the company's growth driver," he said. The current situation is like the second or third round of a baseball game, so its core business can maintain a growth rate of around 15% in the foreseeable future ."

In the second quarter of August 31, RedHat announced earnings per share of 28 cents after deducting specific items, lower than 29 cents in the same period last year. Analysts expect the company's profit to be 29 cents, according to Reuters.

Sales increased by 15% to $0.3236 billion, with analysts expecting $0.3221 billion.

For the current quarter, RedHat said it is expected to earn 28 or 29 cents per share after deducting a specific project, revenue of $0.336 billion to $0.339 billion. Analysts estimated 30 cents and $0.3401 billion respectively.

In the second quarter, software members' revenue grew by nearly 17%, reaching $0.2788 billion. The company's other revenue comes from training and other services. This revenue increased by 1.8% year on year to $43.8 million.

Red Hat provides a basic and free version of Linux, and enterprises are expected to purchase a version with more advanced features. Trip Chowdhry, an analyst at Global Equities Research, said that many users try the free version of Linux in a certain project. If the effect is good, many users will "pay-as-you-go version ".

The share price of RedHat fell slightly during Monday's regular trading period. The stock rose by 39% this year, but fell by May since the beginning of 34%.

"Many people think that the growth rate of operating income will slow down. They also think that the transition from Unix to Linux is in the seventh or fifth board, so they are worried about the saturation of the market ." (CHU Shen)