Red Hat outlook improves thanks to cloud

Cumulus clouds - Wikimedia CommonsLinux outfit Red Hat  reported a 13 percent rise in quarterly revenue, helped by higher demand for open-source software and cloud offerings.

The company’s net income rose to $51.4 million, or 28 cents per share, in the second quarter ended August 31, from $46.8 million, or 25 cents per share, a year earlier.

Revenue rose to $504.1 million from $445.9 million.

Jim Whitehurst, President and Chief Executive Officer of Red Hat said that he was pleased with the progress of the cloud deployments.

“In this quarter, we achieved a public cloud milestone in our Certified Cloud and Service Provider program of an annualised run-rate of $100 million. We are also thrilled to be the first open source company to achieve an annualised run-rate of $2 billion in revenue this quarter. In addition, we believe Red Hat is well-positioned for the second half of the fiscal year as we continue to benefit from delivering innovation to our customers,” said Red Hat’s top banana.

For the third quarter, Red Hat’s outlook is for revenue of $519 million to $523 million, Whitehurst said.