Red Hat reports impressive earnings

Red Hat reports impressive earnings

One of the most popular brand names in the Linux market is Red Hat and the company has just impressed the market experts with their earnings in the last quarter. The company easily managed to top the last quarter’s earnings views on sales of its software applications. Red Hat reported that in the quarter, which ended on Nov. 30, they made around 12 cents a share.

This figure is quite impressive considering they improved on the market expectations by around 33%. This figure is also double of their performance reported last year in the same period. Red Hat reported sales of $73.1 million which itself is an improvement of around 44% compared to last year.

These revenue figures helped the company improve their position in the stock market as their share jumped an additional 4% in after-hours trading. This was in addition to the 3% rise in the prices yesterday. Market experts believe that the company continues to top the choices in Linux vendors in the market.

Red Hat competes directly with software giants Microsoft for a share in the desktop and software operating system market. With Linux gaining more and more popularity, they expect their markets to grow even further. Microsoft is expected to come out with the next generation operating system products based on Vista next year. And it would be interesting to see how Linux fairs against it.

Red Hat faces challenge from companies like Novell in the Linux operating system market. However, they are trailing the market leaders by a huge margin.