Red Hat, Inc. (RHT) has reported a 19.62 percent rise in profit for the quarter ended May 31, 2017. The company has earned $73.19 million, or $0.40 a share in the quarter, compared with $61.18 million, or $0.33 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $101.70 million, or $0.56 a share compared with $92.18 million or $0.50 a share, a year ago. Revenue during the quarter grew 19.18 percent to $676.80 million from $567.90 million in the previous year period. Gross margin for the quarter contracted 8 basis points over the previous year period to 85.12 percent. Total expenses were 87.06 percent of quarterly revenues, up from 86.73 percent for the same period last year. That has resulted in a contraction of 33 basis points in operating margin to 12.94 percent.
Operating income for the quarter was $87.61 million, compared with $75.36 million in the previous year period.
However, the adjusted operating income for the quarter stood at $138.62 million compared to $123.96 million in the prior year period. At the same time, adjusted operating margin contracted 135 basis points in the quarter to 20.48 percent from 21.83 percent in the last year period.
"The first quarter was a strong start to FY18, with double digit growth across a number of our financial metrics, including 19% total revenue growth in U.S. dollars or 20% measured in constant currency and over 40% growth in our Application Development-related and other emerging technology revenue," stated Jim Whitehurst, president and chief executive officer of Red Hat. "We continued to benefit from our ability to deliver important foundational and cloud enabling technologies, which help our customers to modernize and manage their infrastructure and application development platforms for the hybrid cloud."
For fiscal year 2018, Red Hat, Inc. projects revenue to be in the range of $2,785 million to $2,825 million. The company projects operating income to grow at 15.40 percent. It company projects adjusted operating income to grow at 23.60 percent. The company forecasts diluted earnings per share to be in the range of $1.76 to $1.80. It company forecasts diluted earnings per share to be in the range of $2.66 to $2.70 on adjusted basis.
For the second-quarter 2018, Red Hat, Inc. projects revenue to be in the range of $695 million to $702 million. The company projects operating income to grow at 15.70 percent. It company projects adjusted operating income to grow at 24 percent. The company projects diluted earnings per share to be $0.43. On an adjusted basis, the company expects diluted earnings per share to be $0.67.
Operating cash flow improves
Red Hat, Inc. has generated cash of $257.87 million from operating activities during the quarter, up 11.01 percent or $25.58 million, when compared with the last year period. The company has spent $50.83 million cash to meet investing activities during the quarter as against cash outgo of $38.05 million in the last year period.
The company has spent $88.71 million cash to carry out financing activities during the quarter as against cash outgo of $96.12 million in the last year period.
Cash and cash equivalents stood at $1,230.46 million as on May 31, 2017, up 19.28 percent or $198.89 million from $1,031.56 million on May 31, 2016.
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