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RealTime IT News

Red Hat Turns Linux Into Cash

Who says you can't make money from open source technologies?

Shares of Red Hat jumped nearly 9% Friday after the Linux vendor reported earnings that exceeded Wall Street estimates.

Red Hat's earnings of 7 cents a share topped analysts' estimates by two cents, while revenues jumped 46% to $60.8 million, slightly below $61.3 million forecasts due to currency issues. Enterprise subscription revenue soared 63% to $48.7 million.

The company has been under pressure by rival Novell's aggressive pricing, but Red Hat CEO Matthew Szulik said the company hasn't had to change its pricing to meet the threat, but margins did slip somewhat in the quarter.

The broader market was mixed after strong consumer sentiment and manufacturing reports suggested that the Federal Reserve may be able to continue raising interest rates. A rise in oil prices also weighed on stocks.

The Nasdaq was down 1 to 2055 in midday trade, the S&P added 3 to 1194, and the Dow rose 33 to 10,308. Volume was modest in pre-holiday trading, and market breadth was mixed.

Microsoft and IBM edged higher after settling their antitrust claims.

Manugistics gained 4% on its results, while Radware tumbled 14% on a warning.

Jupitermedia , publisher of this Web site, climbed 3% on an acquisition.