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Red Hat profit falls, beats Street view

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CIOL Bureau
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SEATTLE, USA: Red Hat Inc reported lower fiscal second-quarter profit on Wednesday but still beat Wall Street forecasts as sales of its software rose sharply.

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The world's biggest provider of Linux software, whose rivals for corporate customers include Novell Inc and Microsoft Corp, reported profit of $23.7 million, or 12 cents per share. That compared with $28.9 million, or 15 cents per share, in the year-ago quarter when Red Hat recorded a one-time $7.3 million tax gain.

Excluding items, it reported a profit of 19 cents per share. Wall Street was expecting 18 cents per share, on average, according to Thomson Reuters I/B/E/S.

Revenue rose 20 percent to $219.8 million for the quarter, helped by sales of its subscriptions to maintenance contracts that provide upgrades, help-desk support and bug fixes for Linux software. That beat analysts' average forecast of $211.5 million.

Red Hat's shares rose 1.4 percent in extended trading to $37.25 after closing at $36.75 on the New York Stock Exchange.

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