Red Hat surprised analysts with very strong earnings for the second quarter of its fiscal 2015 on Thursday, even as the Linux vendor looked to enter the enterprise mobile apps market with a €63.5m ($82m) acquisition.
The Wall Street wizards were expecting Red Hat to report revenues of $437.13m but it beat that figure handily, pulling down $445.90m for a 19.09 per cent year-on-year increase and a 5.23 per cent increase from the previous sequential quarter.
Those gains were spread evenly across the two segments of Shadowman's business. Subscriptions increased 19.22 per cent to $389.50m and training and services brought in $56.40m, an 18.17 per cent year-on-year increase.
Bigger revenues meant bigger profits, too. Red Hat posted net income of $46.82m for the three months ending on August 31, a 14.74 per cent gain over the same period a year ago and a thundering 24.05 per cent hike sequentially.
Once the dust cleared, the company's earnings beat analysts' most generous estimates, coming in at $0.41 per diluted share.
Not surprisingly, Red Hat execs attributed much of its growth to its moves into the cloud computing market.
"The fastest growing part of our channel business comes from the 80+ Red Hat certified public cloud providers that provide our technologies on-demand in their clouds," CFO Charlie Peters said in a statement.
But good results weren't Shadowman's only news on Thursday. The company also announced that it will spend €63.5m ($82m) to acquire FeedHenry, an Ireland-based vendor of tools for building mobile enterprise apps.
Privately-held FeedHenry's platform is based on Node.js and it offers backend connectors and plugins for linking to enterprise systems such as Oracle, SAP, and Salesforce.com. On the front end it supports a wide variety of mobile app-dev toolkits, including native SDKs, Apache Cordova, Sencha Touch, and Xamarin, among others.
"FeedHenry is an important addition to Red Hat's JBoss xPaaS for OpenShift strategy, announced in September 2013, providing a platform and services for mobile developers and applications," the company said in a canned statement announcing the buy.
The acquisition is expected to close during the current quarter, which ends in November.
Despite all of the positive news, however, Red Hat investors appeared unmoved. The company's share price slumped following the closing bell, dipping by 3 per cent in after-hours trading. ®