Red Hat Reports Third Quarter Results for Fiscal Year 2016

  • Quarterly total revenue of $524 million, up 15% year-over-year or 21% in constant currency
  • Quarterly subscription revenue of $457 million, up 16% year-over-year or 22% in constant currency
  • Deferred revenue of $1.49 billion, up 14% year-over-year

RALEIGH, N.C.--()--Red Hat, Inc. (NYSE:RHT), the world’s leading provider of open source solutions, today announced financial results for the third quarter of fiscal year 2016 ended November 30, 2015.

“Our investments in technologies and partnerships continued to generate strong results as customers transform their IT infrastructure through the increasing adoption of open source technologies and cloud computing,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. “During the third quarter, we strengthened our leadership position in the open hybrid cloud by introducing new technologies and launching a strategic partnership with Microsoft and its Azure Cloud. Our initiatives are focused on enabling our customers to build, deploy and manage their applications across multiple environments and infrastructures.”

“We delivered another strong quarter as we exceeded our guidance. We have now had four consecutive quarters of total revenue growth of 20% or higher on a year-over-year constant currency basis,” stated Frank Calderoni, Executive Vice President, Operations and Chief Financial Officer of Red Hat. “While we continued to invest in our business, strong revenue growth has driven non-GAAP operating income growth of 18% and operating cash flow growth of 16% year-to-date for fiscal 2016.”

Revenue: Total revenue for the quarter was $524 million, up 15% in U.S. dollars year-over-year, or 21% measured in constant currency. Constant currency references in this release are detailed in the tables below. Subscription revenue for the quarter was $457 million, up 16% in U.S. dollars year-over-year, or 22% measured in constant currency. Subscription revenue was 87% of total revenue.

Subscription Revenue Breakout: Subscription revenue from Infrastructure-related offerings for the quarter was $373 million, an increase of 12% in U.S. dollars year-over-year and 18% measured in constant currency. Subscription revenue from Application Development-related and other emerging technologies offerings for the quarter was $84 million, an increase of 37% in U.S. dollars year-over-year and 45% measured in constant currency.

Operating Income: GAAP operating income for the quarter was $69 million, up 3% year-over-year. After adjusting for non-cash share-based compensation expense, amortization of intangible assets and transaction costs related to business combinations, non-GAAP operating income for the third quarter was $123 million, up 13% year-over-year. Non-GAAP references in this release are detailed in the tables below. For the third quarter, GAAP operating margin was 13.2% and non-GAAP operating margin was 23.5%.

Net Income: GAAP net income for the quarter was $47 million, or $0.25 per diluted share, compared with $48 million, or $0.26 per diluted share, in the year-ago quarter. After adjusting for non-cash share-based compensation expense, amortization of intangible assets, transaction costs related to business combinations, and non-cash interest expense from accretion of debt discount, non-GAAP net income for the quarter was $89 million, or $0.48 per diluted share, as compared to $79 million, or $0.42 per diluted share, in the year-ago quarter. Non-GAAP diluted weighted average shares outstanding excludes any dilution resulting from the convertible notes because any potential dilution is expected to be offset by our convertible note hedge transactions.

Cash: Operating cash flow was $140 million for the third quarter, an increase of 5% on a year-over-year basis and 16% year-to-date. Total cash, cash equivalents and investments as of November 30, 2015 was $1.87 billion after repurchasing approximately $78 million, or approximately 987 thousand shares, of common stock in the third quarter. As of November 30, 2015, the remaining balance in the current repurchase authorization was approximately $352 million.

Deferred Revenue: At quarter end, the company’s total deferred revenue balance was $1.49 billion, an increase of 14% on a year-over-year basis. The negative impact to total deferred revenue from changes in foreign exchange rates was $78 million year-over-year. On a constant currency basis, total deferred revenue would have been up 20% year-over-year as detailed in the tables below.

Outlook: Red Hat’s outlook assumes similar business conditions and foreign currency exchange rates as of December 17, 2015. For the full year:

  • Revenue guidance is increased to $2.044 billion to $2.048 billion in U.S. dollars.
  • Full year GAAP operating margin is expected to be approximately 14.1% and non-GAAP operating margin is expected to be approximately 23.5%.
  • Full year fully-diluted GAAP earnings per share (EPS) is expected to be approximately $1.05 per share. Full year fully-diluted non-GAAP EPS is expected to be approximately $1.86 per share. Both GAAP and non-GAAP EPS assume a $1 million per quarter forecast for other income, a 29% annual effective tax rate and 186 million fully-diluted shares outstanding.
  • Operating cash flow guidance range is increased to $695 million to $705 million.

For the fourth quarter:

  • Revenue guidance is $535 million to $539 million.
  • GAAP operating margin is expected to be approximately 13.3% and non-GAAP operating margin is expected to be approximately 22.5%.
  • Fully-diluted GAAP EPS is expected to be approximately $0.26 per share. Fully-diluted non-GAAP EPS is expected to be approximately $0.47. As disclosed in the press release issued on October 16, 2015, EPS guidance includes an increase of $4 million of operating expenses, or ($0.02) per share impact related to the acquisition of Ansible, Inc.

GAAP to non-GAAP reconciliation:

Full year non-GAAP operating margin guidance is derived by subtracting the estimated full year impact of non-cash share-based compensation expense of approximately $163 million, amortization of intangible assets of approximately $26 million and transaction costs related to business combinations of approximately $4 million. Full year fully-diluted non-GAAP EPS guidance is derived by subtracting the expenses listed in the previous sentence and the full year impact of non-cash interest expense from accretion of debt discount of approximately $19 million.

Fourth quarter non-GAAP operating margin guidance is derived by subtracting the estimated impact of non-cash share-based compensation expense of approximately $42 million and amortization of intangible assets of approximately $7 million. Fourth quarter fully-diluted non-GAAP EPS guidance is derived by subtracting the expenses listed in the previous sentence and non-cash interest expense from accretion of debt discount of approximately $5 million.

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements below for information on the factors that could cause our actual results to differ materially.

Webcast and Website Information

A live webcast of Red Hat’s results will begin at 5:00 pm ET today. The webcast, in addition to a copy of our prepared remarks and slides containing financial highlights and supplemental metrics, can be accessed by the general public at Red Hat’s investor relations website at http://investors.redhat.com. A replay of the webcast will be available shortly after the live event has ended. Additional information on Red Hat’s reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial tables below.

About Red Hat, Inc.

Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As a connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.

Forward-Looking Statements

Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to the ability of the Company to compete effectively; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; delays or reductions in information technology spending; the effects of industry consolidation; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission’s website at http://www.sec.gov), including those found therein under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.

Red Hat, Red Hat Enterprise Linux, the Shadowman logo, and JBoss are trademarks of Red Hat, Inc., registered in the U.S. and other countries. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

 
RED HAT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands - except per share amounts)
               
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
Revenue:
 
Subscriptions $457,488 $394,699 $1,323,807 $1,156,161
Training and services 66,092 61,196 184,921 169,387
 
 
Total subscription, training and services revenue 523,580 455,895 1,508,728 1,325,548
 
Cost of revenue:
 
Subscriptions 32,246 28,574 93,088 84,125
Training and services 48,802 42,791 135,321 118,857
 
 
Total cost of subscription, training and services revenue 81,048 71,365 228,409 202,982
 
 
Total gross profit 442,532 384,530 1,280,319 1,122,566
 
Operating expense:
Sales and marketing 215,784 187,218 619,757 538,576
Research and development 104,906 90,613 304,824 275,817
General and administrative 52,965 39,502 139,462 125,786
 
 
Total operating expense 373,655 317,333 1,064,043 940,179
 
Income from operations 68,877 67,197 216,276 182,387
Interest income 2,874 2,196 8,484 6,048
Interest expense 5,817 3,441 17,265 3,591
Other income (expense), net 49 1,559 (1,398) 1,777
 
 
Income before provision for income taxes 65,983 67,511 206,097 186,621
Provision for income taxes 19,135 19,578 59,768 54,120
 
Net income $46,848 $47,933 $146,329 $132,501
 
Net income per share:
Basic $0.26 $0.26 $0.80 $0.71
Diluted $0.25 $0.26 $0.78 $0.70
 
Weighted average shares outstanding:
Basic 182,850 185,039 183,054 187,533
Diluted 186,094 187,674 186,414 190,081
 

 
RED HAT, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
ASSETS
    November 30,     February 28,
2015 2015 (1)
(Unaudited)
Current assets:
Cash and cash equivalents $942,037 $1,047,473
Investments in debt and equity securities 193,993 215,254
Accounts receivable, net 396,545 468,021
Deferred tax assets, net 104,869 86,796
Prepaid expenses 135,402 150,715
Other current assets 1,095 1,980
 
Total current assets 1,773,941 1,970,239
 
Property and equipment, net 161,015 172,151
Goodwill 1,013,202 927,060
Identifiable intangibles, net 164,134 134,276
Investments in debt securities 735,426 546,016
Other assets, net 51,487 53,243
 
Total assets $3,899,205 $3,802,985
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $229,059 $237,733
Deferred revenue 1,080,572 1,095,115
Other current obligations 1,903 1,844
 
Total current liabilities 1,311,534 1,334,692
 
Convertible notes 729,285 715,402
Long term deferred revenue 406,562 387,213
Other long term obligations 107,031 77,340
Stockholders' equity:
Common stock 23 23
Additional paid-in capital 2,119,426 1,963,851
Retained earnings 1,046,702 900,373
Treasury stock, at cost (1,738,752) (1,515,288)
Accumulated other comprehensive loss (82,606) (60,621)
 
Total stockholders' equity 1,344,793 1,288,338
 
Total liabilities and stockholders' equity $3,899,205 $3,802,985
 
 
(1) Derived from audited financial statements
 

RED HAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
               
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
 
Cash flows from operating activities:
Net income $46,848 $47,933 $146,329 $132,501

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 19,858 18,651 56,944 57,114
Share-based compensation expense 43,407 33,623 120,466 98,942
Deferred income taxes 5,841 (780) 3,912 3,125
Net amortization of bond premium on available-for-sale debt securities 3,055 2,407 8,791 6,965
Accretion of debt discount and amortization of debt issuance costs 5,279 3,085 15,697 3,085
Other 853 (175) 2,761 (527)
Changes in operating assets and liabilities net of effects of acquisitions:
Accounts receivable (96,964) (75,917) 64,515 2,314
Prepaid expenses (9,032) (5,922) 3,618 (13,502)
Accounts payable and accrued expenses 21,886 26,254 3,954 56,175
Deferred revenue 96,664 83,912 40,085 57,955
Other 1,908 (83) 1,567 1,264
 
Net cash provided by operating activities 139,603 132,988 468,639 405,411
 
Cash flows from investing activities:
Purchase of available-for-sale debt securities (180,744) (141,928) (783,568) (461,069)
Proceeds from sales and maturities of available-for-sale debt securities 235,931 93,578 589,131 503,110
Acquisition of businesses, net of cash acquired (125,011) (78,317) (126,711) (296,121)
Purchase of other intangible assets (2,097) (2,160) (8,094) (3,911)
Purchase of property and equipment (8,486) (12,201) (29,458) (35,085)
Other (90) 482 (3,249) 2,917
 
Net cash used in investing activities (80,497) (140,546) (361,949) (290,159)
 
Cash flows from financing activities:
Excess tax benefits from share-based payment arrangements 8,756 3,488 17,987 4,897
Proceeds from exercise of common stock options 723 465 3,312 1,154
Purchase of treasury stock (78,172) (375,000) (148,251) (535,062)
Payments related to net settlement of employee share-based compensation awards (27,879) (21,754) (60,816) (39,314)
Proceeds from issuance of convertible notes, net of issuance costs - 790,394 - 790,394
Purchase of convertible note hedges - (148,040) - (148,040)
Proceeds from issuance of warrants - 79,776 - 79,776
Payments on other borrowings (615) (402) (1,352) (2,392)
 
Net cash provided by (used in) financing activities (97,187) 328,927 (189,120) 151,413
 
Effect of foreign currency exchange rates on cash and cash equivalents (11,489) (22,761) (23,006) (29,418)
Net increase (decrease) in cash and cash equivalents (49,570) 298,608 (105,436) 237,247
Cash and cash equivalents at beginning of the period 991,607 585,381 1,047,473 646,742
 
Cash and cash equivalents at end of period $942,037 $883,989 $942,037 $883,989
 

 
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS
(Unaudited)
(In thousands - except per share amounts)
               
 
Non cash share-based compensation expense included in Consolidated Statements of Operations:
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
 
Cost of revenue $4,074 $3,915 $11,952 $10,458
Sales and marketing 17,192 15,866 49,386 39,794
Research and development 13,059 8,129 35,955 28,091
General and administration 9,082 5,713 23,173 20,599
Total share-based compensation expense $43,407 $33,623 $120,466 $98,942
 
 
Amortization of intangible assets expense included in Consolidated Statements of Operations:
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
 
Cost of revenue $3,100 $2,995 $8,291 $8,097
Sales and marketing 2,330 1,958 6,345 5,533
Research and development 312 250 854 2,167
General and administration 1,238 1,439 3,450 4,473
Total amortization of intangible assets expense $6,980 $6,642 $18,940 $20,270
 
 
Non-cash interest expense from accretion of debt discount included in Consolidated Statements of Operations:
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
 
Total non-cash interest expense from accretion of debt discount $4,664 $2,734 $13,883 $2,734
 
Transaction costs related to business combinations included in Consolidated Statements of Operations:
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
 
Transaction costs related to business combinations $3,792 $1,061 $3,844

$4,001

 
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
 
GAAP net income $46,848 $47,933 $146,329 $132,501
 
Provision for income taxes 19,135 19,578 59,768 54,120
 
GAAP income before provision for income taxes $65,983 $67,511 $206,097 $186,621
 
Add: Non-cash share-based compensation expense 43,407 33,623 120,466 98,942
Add: Amortization of intangible assets 6,980 6,642 18,940 20,270
Add: Non-cash interest expense from accretion of debt discount 4,664 2,734 13,883 2,734
Add: Transaction costs related to business combinations 3,792 1,061 3,844 4,001
 
Non-GAAP adjusted income before provision for income taxes $124,826 $111,571 $363,230 $312,568
 
Provision for income taxes (1) 36,200 32,356 105,337 90,645
 
Non-GAAP adjusted net income (basic and diluted) $88,626 $79,215 $257,893 $221,923
 
Non-GAAP adjusted diluted weighted average shares outstanding:
GAAP diluted weighted average shares outstanding 186,094 187,674 186,414 190,081
Dilution offset from convertible note hedge transactions (390) - (349) -
Non-GAAP diluted weighted average shares outstanding 185,704 187,674 186,065 190,081
 
Non-GAAP adjusted net income per share:
Basic $0.48 $0.43 $1.41 $1.18
Diluted $0.48 $0.42 $1.39 $1.17
 
 
(1) Provision for income taxes:
Non-GAAP adjusted net income before income tax provision $124,826 $111,571 $363,230 $312,568
Estimated annual effective tax rate 29.0% 29.0% 29.0% 29.0%
Non-GAAP provision for income taxes before discrete tax benefit $36,200 $32,356 $105,337 $90,645
 

 
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS
(Unaudited)
(In thousands - except per share amounts)
               
 
Reconciliation of GAAP results to non-GAAP adjusted results
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
 
GAAP gross profit $442,532 $384,530 $1,280,319 $1,122,566
 
Add: Non-cash share-based compensation expense 4,074 3,915 11,952 10,458
Add: Amortization of intangible assets 3,100 2,995 8,291 8,097
 
Non-GAAP gross profit $449,706 $391,440 $1,300,562 $1,141,121
 
Non-GAAP gross margin 85.9% 85.9% 86.2% 86.1%
 
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
 
GAAP operating expenses $373,655 $317,333 $1,064,043 $940,179
 
Deduct: Non-cash share-based compensation expense (39,333) (29,708) (108,514) (88,484)
Deduct: Amortization of intangible assets (3,880) (3,647) (10,649) (12,173)
Deduct: Transaction costs related to business combinations (3,792) (1,061) (3,844) (4,001)
 
Non-GAAP adjusted operating expenses $326,650 $282,917 $941,036 $835,521
 
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2015 2014 2015 2014
 
GAAP operating income $68,877 $67,197 $216,276 $182,387
 
Add: Non-cash share-based compensation expense 43,407 33,623 120,466 98,942
Add: Amortization of intangible assets 6,980 6,642 18,940 20,270
Add: Transaction costs related to business combinations 3,792 1,061 3,844 4,001
 
Non-GAAP adjusted operating income $123,056 $108,523 $359,526 $305,600
 
Non-GAAP adjusted operating margin 23.5% 23.8% 23.8% 23.1%
 
 
Three Months Ended  
November 30, November 30, Year-Over-Year
2015 2014 Growth Rate
 
GAAP subscription revenue by offering type
Infrastructure-related offerings $373,091 $332,897 12.1%
Adjustment for currency impact $18,550 -
Non-GAAP Infrastructure-related subscription revenue on a constant currency basis $391,641 $332,897 17.6%
 
Application development-related and other emerging technology offerings $84,397 $61,802 36.6%
Adjustment for currency impact 5,330 -
Non-GAAP Application development-related and other emerging technology subscription revenue on a constant currency basis $89,727 $61,802 45.2%
 
GAAP subscription revenue 457,488 394,699 15.9%
Adjustment for currency impact 23,880 -
Non-GAAP subscription revenue on a constant currency basis $481,368 $394,699 22.0%
 
GAAP training and services revenue $66,092 $61,196 8.0%
Adjustment for currency impact 4,603 -
Non-GAAP training and services revenue on a constant currency basis $70,695 $61,196 15.5%
 
GAAP total subscription, training and services revenue $523,580 $455,895 14.8%
Adjustment for currency impact 28,483 -
Non-GAAP total subscription, training and services revenue on a constant currency basis $552,063 $455,895 21.1%
 
 
Nine Months Ended  
November 30, November 30, Year-Over-Year
2015 2014 Growth Rate
 
GAAP subscription revenue by offering type
Infrastructure-related offerings $1,089,758 $983,915 10.8%
Adjustment for currency impact $68,781 -
Non-GAAP Infrastructure-related subscription revenue on a constant currency basis $1,158,539 $983,915 17.7%
 
Application development-related and other emerging technology offerings $234,049 $172,246 35.9%
Adjustment for currency impact 18,212 -
Non-GAAP Application development-related and other emerging technology subscription revenue on a constant currency basis $252,261 $172,246 46.5%
 
GAAP subscription revenue 1,323,807 1,156,161 14.5%
Adjustment for currency impact 86,993 -
Non-GAAP subscription revenue on a constant currency basis $1,410,800 $1,156,161 22.0%
 
GAAP training and services revenue $184,921 $169,387 9.2%
Adjustment for currency impact 15,487 -
Non-GAAP training and services revenue on a constant currency basis $200,408 $169,387 18.3%
 
GAAP total subscription, training and services revenue $1,508,728 $1,325,548 13.8%
Adjustment for currency impact 102,480 -
Non-GAAP total subscription, training and services revenue on a constant currency basis $1,611,208 $1,325,548 21.6%
 

 
RED HAT, INC.
Supplemental Information
(Unaudited)
(In thousands - except per share amounts)
               
 
Change in deferred revenue balances
Long Term
Current Deferred Deferred Total Deferred
Revenue   Revenue   Revenue
 
Balance at November 30, 2014 941,441 358,684 1,300,125
Constant currency change in deferred revenue (1) 189,212 75,833 265,045
Impact from foreign currency translation (50,081) (27,955) (78,036)
Balance at November 30, 2015 1,080,572 406,562 1,487,134
 
Year-over-year growth rate 14.8% 13.3% 14.4%
Year-over-year growth rate on a constant currency basis 20.1% 21.1% 20.4%
 
 
Revenue growth by geographical segment
Americas EMEA APAC Consolidated
 
Total revenue for the three months ended November 30, 2015 342,368 114,909 66,303 523,580
Adjustment for currency impact 4,364 17,071 7,048 28,483
Total revenue on a constant currency basis for the three months ended November 30, 2015 346,732 131,980 73,351 552,063
 
Total revenue for the three months ended November 30, 2014 290,525 105,755 59,615 455,895
 
Year-over-year growth rate 17.8% 8.7% 11.2% 14.8%
Year-over-year growth rate on a constant currency basis 19.3% 24.8% 23.0% 21.1%
 
 
Total revenue for the nine months ended November 30, 2015 996,405 320,836 191,487 1,508,728
Adjustment for currency impact 11,337 66,395 24,748 102,480
Total revenue on a constant currency basis for the nine months ended November 30, 2015 1,007,742 387,231 216,235 1,611,208
 
Total revenue for the nine months ended November 30, 2014 838,757 310,025 176,766 1,325,548
 
Year-over-year growth rate 18.8% 3.5% 8.3% 13.8%
Year-over-year growth rate on a constant currency basis 20.1% 24.9% 22.3% 21.6%
 
 
(1) Change in deferred revenue includes approximately $0.2 million acquired as part of business combinations.

Contacts

Red Hat, Inc.
Media Contact:
Stephanie Wonderlick, 571-421-8169
swonderl@redhat.com
or
Investor Relations:
Tom McCallum, 919-754-4630
tmccallum@redhat.com

Release Summary

Red Hat reports third quarter results for fiscal year 2016

Contacts

Red Hat, Inc.
Media Contact:
Stephanie Wonderlick, 571-421-8169
swonderl@redhat.com
or
Investor Relations:
Tom McCallum, 919-754-4630
tmccallum@redhat.com