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Red Hat quarterly earnings results
Raven Zachary, September 27, 2006 @ 1:01 pm ETRed Hat announced its fiscal 2007 second quarter earning results yesterday (press release). This was the first quarter that included consolidated JBoss financials. JBoss accounted for $7m of the total $99.7m in revenue for the quarter. Although Red Hat indicated that this was the 6th consecutive quarter adding more than 10,000 new customers and the 18th consecutive quarter of sequential growth in total revenue, profit was down 34% compared to the same quarter in the prior year, due to an increase in operating expenses. Quarterly cash flows from operating activities failed to meet Wall Street’s expectations.
The result? Red Hat’s stock price is down from 26.32 at closing yesterday to 20.20 right now, a drop in 23.25%. That’s a loss of more than a billion dollars in market capitalization overnight. Seeking Alpha has posted a transcript of the conference call, if you are interested. It’s only a matter of time until Red Hat regains that billion dollar market cap loss – there’s still a lot growth in this space, especially with the broader product and services strategy that the company is taking.
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