Founded in 1993, Red Hat is the premier Linux and open source provider. The most recognized Linux brand in the world. We serve global enterprises through technology and services made possible by the open source model. Solutions include Red Hat Enterprise Linux operating platforms, sold through a subscription model, and a broad range of services: consulting, 24x7 support, Red Hat Enterprise Network. Red Hat's global training program operates in more than 60 locations worldwide and features RHCE, the global standard Linux certification 

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Operating cash flow totaled $54.3 million, compared to $49.2 million from the year ago quarter and $63.4 million from the prior quarter. At quarter end, the company's total deferred revenue balance was $496.9 million, an increase of 32% on a year-over-year basis and 1% sequentially. Total cash, cash equivalents and investments as of August 31, 2008 were $1.4 billion.

Other highlights include the following: 
-- JBoss Enterprise Application Platform is now available along with Red Hat Enterprise Linux on the Amazon EC2 Cloud. 
-- Red Hat Enterprise Linux was named the 2008 Product of the Year by Channel Insider, in the Server Operating Systems category. 
-- Red Hat's annual customer and user event, the Red Hat Summit, was held in Boston this year to record attendance. 
-- In early September, Red Hat announced the acquisition of Qumranet, Inc. which is expected to accelerate the time to market to deliver an expanded virtualization solution portfolio to the rapidly growing virtualization market. This acquisition increases Red Hat's investment in and stewardship of core open source virtualization technology including KVM, the only hypervisor embedded in the Linux Kernel. The acquisition also establishes Red Hat in the nascent Virtual Desktop Infrastructure (VDI) market. 
"Our performance this quarter demonstrated strong demand for our products and services, good execution, and the consistency of results afforded by our subscription business model," stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. "Key factors to our growth include the value message, the cost efficiencies of open source solutions and our world-class customer service."
Additional information on Red Hat's reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial tables below. A live webcast of Red Hat's results will begin at 5:00 pm ET today and 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 will have ended.
 

Red Hat Reports Third Quarter Fiscal Year 2008 Results
-- Revenue of $135.4 million, up 28% year-over-year -- Net Income of $20.3 million, up 39% year-over-year -- Record Billings and Cash-flow
RALEIGH, N.C., Dec 20, 2007 (BUSINESS WIRE) -- Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced financial results for its third fiscal quarter ended November 30, 2007. Red Hat's current fiscal year will end February 29, 2008.
Total revenue for the quarter was $135.4 million, an increase of 28% from the year ago quarter and 6% from the prior quarter. Subscription revenue was $115.7 million, up 30% year-over-year and 6% sequentially.
Net income for the quarter was $20.3 million, or $0.10 per diluted share, compared with $18.2 million, or $0.09 per diluted share, for the prior quarter and $14.6 million, or $0.07 per diluted share, in the year ago quarter. Non-GAAP adjusted net income for the quarter was $39.7 million, or $0.19 per diluted share, after adjusting for stock compensation and tax expense as detailed in the tables below. This compares to non-GAAP adjusted net income of $36.9 million, or $0.17 per diluted share, in the prior quarter and $30.1 million, or $0.14 per diluted share, in the year ago period.
Non-GAAP operating cash flow, as detailed in the tables below, totaled $76.7 million for the quarter, up 24% from the year ago quarter and 20% sequentially. Total cash, cash equivalents and investments as of November 30, 2007 were $1.3 billion. At quarter end, Red Hat's total deferred revenue balance was $422.6 million, an increase of 36% year-over-year and 12% sequentially.
Other highlights of the quarter included the following:
-- Red Hat has been named the leader in vendor value and satisfaction by the independent Ziff Davis' 2007 "CIO Insight Vendor Value" survey, which polls IT executives on the value and reliability delivered by vendors. This marks the third time in four years that the company has been ranked #1 among all global IT vendors, and the fourth consecutive year Red Hat has been named the most valued enterprise software vendor. Red Hat also received a remarkable 97% customer loyalty rating from the CIOs polled in the survey.
-- Red Hat introduced the JBoss Advanced Partner Program, that offers value-added resellers (VARs) and systems integrators (SIs) in North America the tools, resources and support to increase their share in the middleware segment. Red Hat has already teamed with over 70 JBoss-specific channel partners worldwide.
"We are very pleased to be recognized by CIO's for the fourth consecutive year as the most valued Enterprise Software Vendor and best overall IT Vendor for the third time in four years," stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. "There is a direct correlation between our ability to deliver real business value and the loyalty of our large and growing customer base. As a result of strong market demand and solid execution from our worldwide organization, we were able to deliver another strong financial performance in the third quarter and we are optimistic about our outlook." 

Red Hat To Webcast Results for Third Quarter of Fiscal Year 2008
RALEIGH, N.C.--(BUSINESS WIRE)--Nov. 19, 2007--Red Hat, Inc. (NYSE:RHT), the world's leading provider of open source solutions, will discuss results of its third quarter of fiscal year 2008 on Thursday, December 20, 2007, beginning at 5:00 pm ET. Red Hat's fiscal third quarter will end November 30, 2007.
Thomson/CCBN will webcast the live event, which can be accessed on Red Hat's Investor Relations web-page http://investors.redhat.com. A replay will be available beginning approximately two hours after the conclusion of the live event.
The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the webcast at www.fulldisclosure.com, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the event via Thomson's password-protected event management site, StreetEvents (www.streetevents.com).