Red Hat Q3 Profit Down - Update

(RTTNews) - Red Hat Inc., (RHT), Monday reported a third-quarter profit that declined from a year ago, despite 13 percent growth in revenues, as operating costs increased.

Raleigh, North Carolina-based Red Hat reported third-quarter profit of $94.5 million or $0.51 per share, down from $101.6 million or $0.55 per share last year.

Adjusted earnings for the quarter were $175.3 million or $0.96 per share, up from $133.34 million or $0.73 per share last year.

Revenues for the quarter grew 13% to $846.8 million from $748.0 million last year. Analysts polled by Thomson Reuters had a consensus revenue estimate of $829.49 million for the quarter.

Total operating expenses increased to $613.7 million from $517.5 million last year.

Subscription revenue for the quarter was $741 million, up 13% year-over-year, or 15% measured in constant currency. Subscription revenue in the quarter was 87% of total revenue.

Subscription revenue from Infrastructure-related offerings for the quarter was $534 million, an increase of 8% year-over-year, while subscription revenue from Application Development-related and other emerging technology offerings for the quarter was $207 million, an increase of 28% year-over-year.

RHT closed Monday's trading at $176.00, down $0.50 or 0.28% on the NYSE.