Red Hat profit rises on demand for Linux software

Red Hat Inc. (RHT.N: Quote, Profile , Research) reported an 18 percent jump in net income on Wednesday, but shares in the maker of business software declined as its quarterly cash flow fell short of Wall Street expectations.

The developer of Linux software, used to run business computers and corporate data centers, also said it was on target to meet full-year earnings forecasts it released three months ago.

It posted fiscal first-quarter profit of 16 cents a share, excluding items, just ahead of analysts' average forecast of 15 cents, according to Reuters Estimates.

But cash flow fell short of some forecasts for the period, which ended May 31, due to higher-than-expected spending.

Chief Financial Officer Charlie Peters told investors the extra costs were the result of some one-time items, including spending on the release of a new version of its flagship product and a users conference, along with negative foreign currency impact.

The company reported $52.25 million in non-GAAP cash-flow from operations. Jefferies & Co. analyst Katherine Egbert said that fell short of her forecast of about $55.5 million.
Source :http://investing.reuters.co.uk