Red Hat (RHT) has reported 7.87 percent fall in profit for the quarter ended Nov. 30, 2014. The company has earned $47.93 million, or $0.26 a share in the quarter, compared with $52.02 million, or $0.27 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $79.22 million, or $0.42 a share compared with $80.88 million or $0.42 a share, a year ago. Revenue during the quarter grew 14.97 percent to $455.90 million from $396.54 million in the previous year period. Gross margin for the quarter contracted 42 basis points over the previous year period to 84.35 percent. Total expenses were 85.26 percent of quarterly revenues, up from 84.67 percent for the same period last year. That has resulted in a contraction of 59 basis points in operating margin to 14.74 percent.
Operating income for the quarter was $67.20 million, compared with $60.79 million in the previous year period.
However, the adjusted operating income for the quarter stood at $108.52 million compared to $98.21 million in the prior year period. At the same time, adjusted operating margin contracted 96 basis points in the quarter to 23.80 percent from 24.77 percent in the last year period.
“Outstanding sales execution in the third quarter drove strong performance across the board. We excelled on virtually every key financial metric we track,” stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. “We have had sequential quarterly revenue growth at Red Hat every quarter for 51 straight quarters. We believe the growing number and size of large deals reflects the increasingly strategic relationship that Red Hat is building with customers, in addition to customer demand for our broadening product portfolio.”
Operating cash flow improves Red Hat has generated cash of $405.41 million from operating activities during the nine month period, up 13.91 percent or $49.51 million, when compared with the last year period.
The company has spent $290.16 million cash to meet investing activities during the nine month period as against cash inflow of $72.02 million in the last year period
Cash flow from financing activities was $151.41 million for the nine month period as against cash outgo of $263.08 million in the last year period. It has spent net of $454.13 million on repurchase of common stocks.
Cash and cash equivalents stood at $883.99 million as on Nov. 30, 2014, up 37.67 percent or $241.88 million from $642.11 million on Nov. 30, 2013.
Working capital increases
Red Hat has recorded an increase in the working capital over the last year. It stood at $532.40 million as at Nov. 30, 2014, up 20.17 percent or $89.34 million from $443.05 million on Nov. 30, 2013. Current ratio was at 1.45 as on Nov. 30, 2014, up from 1.43 on Nov. 30, 2013.
Days sales outstanding went up to 64 days for the quarter compared with 62 days for the same period last year.
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