More Red Ink for Red Hat

Continuing to lose money, Linux and open source solutions provider Red Hat
Inc. posted a fiscal fourth-quarter GAAP loss of $41.9 million, or 25 cents a
share, compared with a net loss of $24.2 million, or 14 cents a share, a year
earlier.


For its fiscal year ended Feb. 28, the Raleigh, N.C.-based company reported revenues of $78.9 million, a 2 percent decline from the
prior year.


On a GAAP basis, the company reported a net loss of $139.9 million or 83
cents per share for its fiscal year, compared to a net loss of $86.7 million
or 53 cents per share for the prior fiscal year.


The company has yet to make any money, but tried to put on a happy face in
its earnings report, saying the fourth quarter was “characterized by
continued strong performance in the Enterprise marketplace, as evidenced by
the addition of 10 enterprise customers (including Dell Computer, Amazon.com
and America Online) who are making large scale deployments of Red Hat’s Open
Source technologies.”


On a pro forma basis, the company reported a fourth-quarter adjusted net
income from continuing operations of $1.0 million, or 1 cent per share,
excluding amortization of goodwill, stock-based compensation and
restructuring charges, for the fourth quarter. That more or less met Wall
Street’s expectations.


“Fiscal 2002 has been a successful year for Red Hat,” said Kevin Thompson,
executive vice president and CFO. “It has been marked by the successful
transition of the company from a retail software products company to a
provider of Open Source Solutions to the large enterprise.”

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