(By Balaseshan) Red Hat Inc. (NYSE:RHT), a provider of open source software solutions, reported an increase in first quarter earnings helped by higher technologies demand and revenue. Despite results beating Street's expectations, its shares fell 12.21% in aftermarket.
Earnings for the first quarter were $37.46 million or $0.19 per share, up from $32.45 million or $0.17 per share last year. Adjusted earnings rose to $0.30 per share from $0.24 per share.
Revenue grew 19% to $314.73 million.
Analysts had expected a profit of $0.27 per share on revenue of $310.77 million.
Revenue from subscriptions grew to $272.57 million from $225.53 million and deferred revenue rose to $913 million from $786 million.
Adjusted gross margin increased to 86.3% from 85.0%. Adjusted operating margin rose to 25.8% from 25.1%.
Finance chief Charlie Peters said Red Hat continues to display an attractive combination of scale, revenue growth, profitability and cash flow. In Q1, the company delivered adjusted operating income growth of 22% while continuing to invest in important growth initiatives in markets such as virtualization, cloud computing and storage.
RHT closed Wednesday's regular trading down 0.74% at $56.50. The stock has been trading between $31.77 and $62.75 for the past 52 weeks.