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Red Hat reports 17 pc increase in y-o-y revenue

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Deepa
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BANGALORE, INDIA: Open source player Red Hat posted a 17 per cent year-over-year increase in its revenues, from $348 million to $1.33 billion, during fourth quarter of the fiscal year. Subscription revenue for the quarter was $303 million, up 19 per cent year-over-year.

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"For FY13, the growth drivers in our business remained intact, driving record annual revenue, billings proxy and total backlog up 17 per cent, 14 per cent and over 19 per cent year-over-year, respectively. Within total backlog, the value of customer contracts to be billed in the future and not reflected in our financial statements increased to over $280 million, or up over 40 per cent, as customers increased their commitments to Red Hat technologies in the data center," stated Jim Whitehurst, president and chief executive officer, Red Hat.

"We continued to see momentum with large deals in Q4, closing a record number of deals in excess of $5 million and $10 million. We now provide solutions to over 90 per cent of Fortune 500 companies as well as tens of thousands of smaller companies. New customer additions coupled with renewing and up-selling our existing customer base enabled us to exceed the billion dollar milestone in both subscription revenue and deferred revenues for the first time," he added.

GAAP and non-GAAP results for the fiscal 2013 fourth quarter benefited by approximately $0.03 per share as a result of the retroactive reinstatement in January 2013 of the U.S. research tax credit.

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For the full year, GAAP net income was $150 million or $0.77 per diluted share, compared with $147 million or $0.75 per diluted share in the prior year. After adjusting for stock compensation, amortization expenses and certain facility exit costs, as detailed in the tables below, non-GAAP adjusted net income for the year was $240 million or $1.23 per diluted share, compared to $216 million or $1.10 per diluted share for the previous fiscal year.

"During fiscal year 2013, we invested aggressively in new product areas such as storage, cloud computing, management and big data through new internal initiatives and three acquisitions in the second half of the fiscal year. Despite these investments, we generated overnine per cent year-over-year growth in non-GAAP operating income and 19 per cent full year operating cash flow growth" stated Charlie Peters, executive vice president and chief financial officer of Red Hat. "These investments enhance our strategic position in the data center and increase our addressable market."

Total backlog for fiscal year 2013 was in excess of $1.37 billion or up over 19 per cent year-over-year. The portion of total backlog to be billed in the future not reflected in our financial statements was in excess of $280 million as of February 28, 2013, compared with in excess of $200 million for the fiscal year ending February 29, 2012, up over 40% year-over-year.

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