Red Hat reported another solid quarter, as the Raleigh software company continues to win new customers worldwide.
The company reported earnings per share of 19 cents for the quarter ended Aug. 31, beating Wall Street expectations by 1 cent. Revenue rose to $219.8 million, up 20 percent from a year earlier.
Red Hat hasn't missed earnings per share estimates for 23 straight quarters, reports Bloomberg News.
Company officials also raised their revenue expectations for the full year, to $877 million to $885 million, up from $835 million to $850 million.
Red Hat shares, up 45 percent in the past year, closed today at $36.75, down $1.68. In late trading after the earnings were released, the stock rose more than $1.
Red Hat is the world's largest distributor of Linux software, a type of open-source computer operating technology that's cheaper than Microsoft's Windows and simpler to customize.
The economic downturn had led many corporations and others to look at cheaper software choices, giving Red Hat a boost. The company continues to hire and employs more than 600 people in Raleigh.
Naturally, the bigger question is what the future holds. Analysts and investors will listen carefully to Red Hat CEO Jim Whitehurst and chief financial officer Charlie Peters as they discuss expectations for the rest of this year, and whether increasing competition is going to erode sales.
Listen live to their conference call, scheduled for 5 p.m. today, online here.