Red Letter Day for Red Hat

Time to throw those hats in the air, methinks:

Red Hat, Inc. the world's leading provider of open source solutions, today announced financial results for its fiscal year 2007 third quarter.

Total revenue for the quarter was $105.8 million, an increase of 45% from the year-ago quarter and 6% from the prior quarter. Subscription revenue was $88.9 million, up 48% year-over-year and 5% sequentially.

Net income for the quarter was $14.6 million or $0.07 per diluted share compared with $11.0 million or $0.05 per diluted share for the prior quarter. Non-GAAP adjusted net income for the quarter was $29.6 million, or $0.14 per diluted share, after adjusting for stock compensation and tax expense as detailed in the tables below. This compares to non-GAAP adjusted net income of $22.7 million, or $0.11 per diluted share in the third quarter of last fiscal year.

These figures are important for a number of reasons (and no, I don't own any shares - never have, never will.) It shows that Red Hat has been unaffected by all of Larry's Machiavellian machinations; it also indicates the rude health of open source's bellwether. That's good not just for Red Hat, but for the whole free software ecosystem too.