Red Hat forecasts Q1 break-even, fiscal '03 profit

SEATTLE: Red Hat Inc. said on Tuesday it expected to post a profit, excluding

charges, of 4 to 5 cents per share for fiscal 2003 as business reignites for the

Linux operating system provider with forecast sales growth of at least 26

percent.

Revenue for Raleigh, North Carolina-based Red Hat is expected to rise to

between $99.5 million and $101 million in its fiscal year ending next Feb. 28,

compared with $78.9 million for the year just ended, Chief Financial Officer

Kevin Thompson told analysts in a conference call.

On an "adjusted" basis excluding many charges, Red Hat expects to

turn a profit of 4 cents or 5 cents a share for the year, with break-even

performance in the first quarter. On an operating basis, the company is expected

to lose between $3 million and $4 million for the year, with break-even

occurring in the third quarter, Thompson said.

First quarter revenues are seen growing 4 per cent to 5 per cent over the

fourth quarter's $18.6 million, Thompson said. Wall Street analysts polled by

earnings tracking firm Thompson Financial/First Call expected Red Hat to break

even in the first quarter on revenues of $25.6 million.