Linux software maker Red Hat Inc. Tuesday reported a break-even quarter in terms of adjusted earnings per share as revenue slipped 15 percent from the same quarter a year ago in the midst of a slower market for corporate software.
The maker of the Red Hat Linux open-source operating system lost US$100,000, with flat earnings per share in the fiscal second quarter, which ended Aug. 31, after adjusting for one-time charges. In last year's fiscal second quarter, Red Hat reported a loss of $4 million, or $0.02 per share, excluding charges.
Red Hat matched analysts estimates which called for break-even earnings per share, according to a poll by Thomson Financial/First Call, which forecasts earnings per share excluding charges.
Including charges and other one-time costs, Red Hat said it lost $55.3 million, or $0.33 per share in the second quarter of this fiscal year, compared with a loss of $20 million, or $0.12 per share in the same quarter a year ago.
Those charges included a restructuring cost of $37.2 million, to account for $33.8 million in costs related to acquisitions made in prior periods, and $3.4 million in severance-related expenses, Red Hat said. During the quarter, the company said it restructured its operations to focus on two primary areas -- migrating customers from the UNIX operating system to Linux and fortifying its products in the embedded system market.
Total revenue for the second quarter was US$21.1 million, down 15 percent compared to $25 million in the same quarter last year.