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Red Hat Breaks Even, Beats Street Estimate

Posted by Hemos on from the downing-in-submissions dept.

jfinke writes "Linux Today is running an article about Redhat's financial situation. The company reported an adjusted net loss of $600,000, or break even per share, for the fourth quarter of fiscal 2001, compared to an adjusted net loss of $5.6 million, or $0.04 per share, for the fourth quarter of fiscal 2000. On a reported basis, the net loss was $24.2 million, or $0.14 per share, compared with a net loss of $24.6 million, or $0.17 per share in fiscal 2000." Congrats to all the folks there.

4 of 165 comments (clear)

  1. Re:Where Should I Invest? by AJWM · · Score: 5

    Whoever marked that as a troll obviously didn't read it, or doesn't understand money, or both.

    Sure, MSFT may have had a better earnings/share, but look at their revenue growth: 18% over the last year vs RHAT's 106% growth. Indeed, RHAT had more growth between quarters (20%) than MSFT did all year.

    I know where I'd put my money. (Of course, when you're small, it's easier to get large percentage gains. That works against you when you're large. The rolling average (filters out daily fluctuations) on MSFT's share price has been steadily downward for the last year.)

    --
    -- Alastair
  2. The real story by schulzdogg · · Score: 5
    The real story here isn't how the accountants jiggered the numbers, or how much they lost, or how much they didn't lose. The story is that they did better than they forcast. That's the most important thing. Redhat has managed to prove to wall street that they could devise a plan, and execute it.

    In financial markets this is a very good thing.

    Positive news for a technology company these days is great news for everybody on slashdot. Linux needs a company that can be held up in board meetings and pointed to --> Hey these guys are doing business, the street likes them, linux has some base, let's give it some thought.

    I explained linux to my grandfather last night and opensource made him very incredulous. A bunch of random people writing code isn't going to break down conservative barriers. A large successful corporation whose business is linux will break those barriers. Positive news on Redhat is great from this perspective, especially given the present market conditions.

  3. Numbers not so good actually by jmoloug1 · · Score: 5
    From the article,

    On a reported basis, the net loss was $24.2 million, or $0.14 per share, compared with a net loss of $24.6 million, or $0.17 per share in fiscal 2000.

    They only broke even for one quarter using adjusted numbers. The actual losses are actually quite stunning. The term adjusted losses is just accounting voodoo to hide the company's deteriorating cash position.

  4. Re:Where Should I Invest? by skoda · · Score: 5

    If you're looking for ROI (return on investment) via growth, it's all about the slope, baby! I'd rather invest in $5 stocks that increase to $15, than invest in $100 stocks that increase to $110.

    The more appropriate question, is whether Red Hat will exist in five years. (Of course, some ask the same about MS.) It's considered by most a bad idea to invest in companies that won't exist in a few years.
    -----
    D. Fischer

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    ShoutingMan.com