- Results – revenue $615.26M (+17.5% Y/Y, $2.76M below estimates), EPS $0.61 ($0.03 above estimates), operating income $143M (+16% Y/Y), operating margin 23.3%, net income $111M (vs. $89M Y/Y), operating cash flow $136M (-8% Y/Y), cash, cash equivalents and investments $2B, remaining repurchase authorization balance $775M, deferred revenue $1.7B (+15% Y/Y),
- Segment revenues – Subscriptions $543.318M (vs. $457.488M Y/Y), Training and Services $71.942M (vs. $66.092M Y/Y)
- Other developments – CFO Frank Calderoni departing (resignation letter), effective late January, 2017, for a CEO role elsewhere. Current finance and accounting VP Eric Shander to be appointed acting CFO pending permanent replacement.
- Q4 projections – revenue $614M-$622M (consensus $637.44M), EPS $0.61 (consensus $0.61), operating margin 24%
- FY 2017 projections – revenue $2.397B-$2.405B (consensus $2.42B), EPS $2.27 (consensus $2.22), operating margin 23%, operating cash flow $770M-$785M
- Red Hat (NYSE:RHT) president and CEO Jim Whitehurst: "Enterprise and service provider customers continue to adopt a hybrid cloud strategy for developing, deploying and managing the life-cycle of their critical applications. Red Hat is uniquely positioned to address this need. In aggregate, customers utilizing our cloud-enabling technologies either on-premise or in the public cloud are spending more with Red Hat than customers that have not yet embraced our cloud-enabling technologies."
- Conference call
- Press release
- 8-K