Red Hat Up 5% After Hours; Beats Q1 Street Views

Red Hat Inc.

rose sharply in after-hours trading after the company beat Wall Street's fiscal first-quarter earnings expectations. The open-source software maker's adjusted earnings rose 3.2 percent to $64 million, or 34 cents a share. from $62 million, or 32 cents a share in the year ago period. Analysts on average expected 33 cents a share. Revenue grew 17 percent to $424 million, including an 18 percent gain in subscription revenue to $372 million. "As evidence of this demand and Red Hat's strong market position, we closed a record number of first quarter deals of a million dollars or more," Chief Executive Jim Whitehurst said in a statement. Net income including stock compensation, amortization and other items was $38 million, or 20 cents a share, compared with $40 million, 21 per cents a share a year earlier.