Red Hat Inc, the world’s largest distributor of Linux operating software, posted third-quarter revenue above analysts’ estimates on strong growth in its subscription business, sending its shares up 6 percent in after-market trading.<\/p>\n
The company also said it would buy privately held ManageIQ, which provides management and automation programs for cloud computing, for $104 million in cash.<\/p>\n
The acquisition, its fourth since October last year, is not expected to have any material impact to Red Hat’s revenue for the fiscal year ending February 28.<\/p>\n
Red Hat expects to earn between 29 cents and 30 cents per share in the fourth quarter, on revenue of $347 million to $351 million, it said on a conference call with analysts.<\/p>\n
Analysts were expecting earnings of 30 cents on revenue of $350.9 million, according to Thomson Reuters I\/B\/E\/S.<\/p>\n
Third-quarter net income fell to $34.8 million, or 18 cents per share, from $38.2 million, or 19 cents per share, a year earlier.<\/p>\n
On an adjusted basis, the company earned 29 cents per share, in line with expectations. Revenue rose 18 percent to $344 million, beating estimates of $338 million.<\/p>\n
Red Hat’s subscription revenue rose 19 percent to $294.2 million in the quarter ended November 30.<\/p>\n
Shares of the Raleigh, North Carolina-based company were trading at $55.60 after the bell. The stock closed at $52.61 on the New York Stock Exchange on Thursday.<\/p>\n
(Reporting by Neha Alawadhi; Editing by Krishna N. Das)<\/p>\n