Red Hat yesterday announced financial results for its fiscal year 2010 third quarter (ended November 30, 2009).
Total revenue for the quarter was $194.3 million, an increase of 18% from the year ago quarter. Subscription revenue for the quarter was $164.4 million, up 21% year-over-year.
GAAP operating income for the quarter was $19.8 million, including a previously announced charge of $8.8 million for a litigation settlement, compared to $21.0 million in the year ago quarter. After adjusting for stock compensation, amortization expenses and the charge for the litigation settlement as detailed in the tables below, non-GAAP operating income for the quarter was $46.1 million, up 20% year-over-year. GAAP operating margin was 10.2%. Non-GAAP operating margin was 23.7%, up 50 basis points from the year ago quarter.
GAAP net income for the quarter was $16.4 million, or $0.08 per diluted share, compared with $24.3 million, or $0.12 per diluted share, in the year ago quarter. The current quarter GAAP net income was reduced by $0.03 per diluted share due to the charge for the litigation settlement. Non-GAAP adjusted net income for the quarter was $33.5 million, or $0.17 per diluted share, after adjusting for stock compensation, amortization expenses and the charge for the litigation settlement as detailed in the tables below, as compared to $36.9 million, or $0.18 per diluted share, in the year ago quarter.
Operating cash flow totaled $54.1 million, compared to $59.1 million from the year ago quarter. Due to record billings, accounts receivable increased $24 million compared to last year even as days sales outstanding (DSO) improved to 54 days compared to 59 days last year. At November 30, the company’s total deferred revenue balance was $618.7 million, an increase of 23% on a year-over-year basis. Total cash, cash equivalents and investments as of November 30, 2009 were $959.1 million after repurchasing $52.3 million, or 1.9 million shares, of common stock.
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