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Red Hat In The Black for Q3
wheeeee! writes "Red Hat has posted a profit for the third quarter. Well, a meager $300 grand of actual net, but still a profit nonetheless. Their total revenue of $24.3 million was higher than expected. The cash flow appears to have been spurred by an increase in sales of RH's Advanced Server, of which 12000 were sold, compared to 8000 the previous quarter. RH says they're now following the Generally Accepted Accounting Principles, developed in the wake of recent accounting troubles at some companies."
If Redhat is pushing (or wants to push) the linux community towards more standardisation, why don't they join the unitedlinux effort then ?
The standardization effort is LSB. "UnitedLinux" is more of a marketing tactic from Suse than a standardization effort...
If suse, caldera, conectiva and openlinux can put aside their own goals
Two of these, caldera (openlinux is a product of them) and TurboLinux, are dead companies (as far as Linux development goes... their developers are gone). This isn't four companies pooling their efforts, this is SuSE desperately trying to counter Red Hat and signing up dead/severely hurting companies and give the impression of something more.
You know how many times I heard these "Redhat is getting too big" comments since the 90's? Linux is free, GPL, and can't be "owned" by any vendor including Microsoft or Redhat. I'll tell you what I think on this...*?#!$@*!! up about it,and stop bringing it up!
If you wanna get rich, you know that payback is a bitch
Correctly if I'm wrong but the GAAP were developed weren't developed in the wake of recent accounting troubles, but the bulk of them were developed during the 60's and 70's. I can certainly remember being taught them 10 years ago when I did my degree.
This site seems to agree.
Unless these are some new US ones. Anyway it is nice to see a tech company doing well.
But the Generally Accepted Accounting Principles (also known as GAAP) have been around for a LONG time. Not just since the recent accounting problems showed their face as the poster implies.
That $64mil in losses is not so significant when you consider Red Hat's balance sheet. The company has far more than that in current assets (i.e., cash, cash equivalents, and short term investments). Going into the last quarter, Red Hat had $375mil in total assets and only $47mil in total liabilities.
SM
$113,383,000 of this was liquid assets, compared to $47 mil puts them at about 41% debt load. Not a good place to be, when normal industry worries when they're at 10-15% debt ratios.
"RH says they're now following the Generally Accepted Accounting Principles, developed in the wake of recent accounting troubles at some companies."
When I last checked GAAP-based accounting has been around since the 1930s although they were not known by that name. In the USA, FASB is reponsible for establishing US GAAP. If Red Hat previously chose not to follow these standards and cook their books instead, we should hardly applaud them for finally doing what they should have done all along... especially now that deceptive accounting practices are no longer in fashion in the corporate world.
From the American Institute of Certified Public Accountants:
Between 1938 and 1959, the AICPA's Committee on Accounting Procedure (CAP) issued fifty-one authoritative pronouncements known as Accounting Research Bulletins that formed the basis of what became known as generally accepted accounting principles, or GAAP. In 1959, the CAP was replaced by another part-time body, the Accounting Principles Board (APB), which during the next fourteen years issued thirty-one new standards.
From the Financial Accounting Standards Board:
Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports.
Worried about 10-15%? Get real. Look at MSFT:
Total liquid assets: $50bil
Total liabilities: $16.7bil
So, is MSFT "worried" about their whopping 33% "debt-load?" I think not.
Again, RHAT has a 41% liquid assets/liabilities ratio. MSFT is at 33%. Not a real big difference there.
Learn a little about corporate finances before making misleading doomsday postings about Red Hat's crushing debt.
SM
...to the dude's story? Red Hat is making its money selling to big buisiness. Same way Oracle does. Same way a lot of companies do. The desktop market the not only one out there.
Ignorance kills, complacency kills, hatred kills, but usually not the ones guilty of them.