UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of report (Date of earliest event reported): September 21, 2015
Red Hat,
Inc.
(Exact
Name of Registrant as Specified in Its Charter)
Delaware
(State
or Other Jurisdiction of Incorporation)
001-33162
|
06-1364380
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
100 East Davie Street, Raleigh, North Carolina
|
27601
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
(919)
754-3700
(Registrant’s
Telephone Number, Including Area Code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General
Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On September 21, 2015, Red Hat, Inc. announced its financial results for
the fiscal quarter ended August 31, 2015. The full text of the press
release issued in connection with the announcement is furnished as
Exhibit 99.1 to this Current Report on Form 8-K.
In the press release, we disclosed non-GAAP financial information for
the three months and six months ended August 31, 2015 and August 31,
2014. These non-GAAP disclosures include non-GAAP revenue growth rates
measured on a constant currency basis and a reconciliation of GAAP net
income to non-GAAP adjusted net income based on:
-
the impact of non-cash share-based compensation expense under FASB ASC
Section 718 Compensation-Stock Compensation (formerly referenced as
Statement of Financial Accounting Standards No. 123 (Revised 2004),
Share-Based Payment) ("ASC 718");
-
the impact of expense associated with the amortization of intangible
assets primarily related to business combinations;
-
the impact of non-cash interest expense from accretion of debt
discount; and
-
the impact of transaction costs related to business combinations.
These non-GAAP disclosures should not be used as a substitute for our
GAAP results, but rather read in conjunction with our GAAP results. The
non-GAAP financial measures we disclosed and the methods we used to
calculate non-GAAP results are not in accordance with GAAP and may be
materially different from the non-GAAP measures and methods used by
other companies.
We disclosed non-GAAP revenue growth rates for subscription revenue and
total revenue measured on a constant currency basis for the three months
and six months ended August 31, 2015, in an effort to provide a
comparable framework for assessing how our business performed when
compared to the three months and six months ended August 31, 2014 in
light of the effect of exchange rate differences. Approximately 40.4%
and 40.3% of our revenue for the three months and six months ended
August 31, 2015, respectively, was produced by sales outside the United
States. The income statements of our non-U.S. operations are translated
into U.S. dollars using the average exchange rates for each month in an
applicable period. To the extent the U.S. dollar weakens against
foreign currencies, the translation of transactions denominated in
foreign currencies results in increased revenue, as stated in U.S.
dollars, for our non-U.S. operations. Similarly, revenue, as stated in
U.S. dollars, for our non-U.S. operations decreases if the U.S. dollar
strengthens against foreign currencies. Using the average foreign
currency exchange rates for each month of the three months and six
months ended August 31, 2014, our subscription revenue for the three
months and six months ended August 31, 2015 would have been higher than
we reported by $31.1 million and $62.4 million, respectively, and our
total revenue for the three months and six months ended August 31, 2015
would have been higher than we reported by $36.8 million and $73.1
million, respectively.
We excluded GAAP share-based compensation expense for the purpose of
calculating non-GAAP adjusted net income and non-GAAP adjusted net
income per share because it is a non-cash expense which may vary
significantly from period to period as a result of changes not directly
or immediately related to the particular periods operational
performance. For example, the amount recognized for share-based awards
is directly related to the underlying share price of our common stock as
of the date of grant, which, in the short-term, may not be directly
related to our operational performance. Consequently, management
believes that by excluding such expense we provide an alternative and
useful measure of operating performance. Management also believes that
non-GAAP measures of profitability that exclude share-based compensation
expense are used by a number of financial analysts in the software
industry to compare current performance to prior periods and to forecast
future performance. Our reconciliation of GAAP net income to non-GAAP
adjusted net income includes GAAP non-cash, share-based compensation
expense of $40.5 million and $77.1 million for the three months and six
months ended August 31, 2015, respectively, and $36.6 million and $65.3
million for the three months and six months ended August 31, 2014,
respectively, versus the non-GAAP exclusion of such expense.
Amortization expense related to intangible assets results primarily from
business combinations. These costs are fixed in connection with an
acquisition, are then amortized over a number of years after the
acquisition and generally cannot be changed or influenced by management
after the acquisition. Accordingly, management generally does not
consider such costs for the purpose of evaluating the performance of the
business or its managers or when making decisions to allocate
resources. Management also believes that non-GAAP measures of
profitability that exclude amortization expense related to intangible
assets are used by a number of financial analysts in the software
industry to compare current performance to prior periods and to forecast
future performance. Our reconciliation of GAAP net income to non-GAAP
adjusted net income includes GAAP non-cash amortization expense of $6.1
million and $12.0 million for the three months and six months ended
August 31, 2015, respectively, and $7.0 million and $13.6 million for
the three months and six months ended August 31, 2014, respectively,
versus the non-GAAP exclusion of such expense.
We also excluded GAAP non-cash interest expense relating to our 0.25%
convertible senior notes issued in October 2014 for the purpose of
calculating non-GAAP adjusted net income and non-GAAP adjusted net
income per share. Under GAAP, certain convertible debt instruments that
may be settled in cash on conversion are required to be accounted for as
separate liability (debt) and equity (conversion option) components in a
manner that reflects the issuer’s non-convertible debt borrowing
rate. This results in the debt component being treated as though it was
issued at a discount, with the debt discount being accreted as
additional non-cash interest expense over the term of the notes using
the effective interest method. As a result, management believes that
excluding this expense from our non-GAAP measures is useful because this
incremental interest expense does not represent a cash outflow and is
not indicative of our ongoing operational performance. Our
reconciliation of GAAP net income to non-GAAP adjusted net income
includes GAAP non-cash interest expense related to convertible debt of
$4.6 million and $9.2 million for the three months and six months ended
August 31, 2015, respectively, versus the non-GAAP exclusion of such
expense.
We also excluded GAAP expense relating to costs we incurred in
connection with business combinations. These costs include
acquisition-related charges such as transaction and restructuring
expenses. As we do not acquire or dispose of businesses on a
predictable cycle, the terms of each acquisition are unique and can vary
significantly from other acquisitions and significant expense can be
incurred in connection with an acquisition that we would not have
otherwise incurred in the periods presented as part of our continuing
operations, management believes that by excluding such expense we
provide an alternative and useful measure of operating
performance. Management also believes that non-GAAP measures of
profitability that exclude acquisition-related charges are used by a
number of financial analysts in the software industry to compare current
performance to prior periods and to forecast future performance. Our
reconciliation of GAAP net income to non-GAAP adjusted net income
includes GAAP acquisition-related expense of $0.1 million for the three
months and six months ended August 31, 2015 and $1.0 million and $3.0
million for the three months and six months ended August 31, 2014,
respectively, versus the non-GAAP exclusion of such expense.
Management believes that these adjusted non-GAAP results, when read in
conjunction with the GAAP results, offer a useful view of our business
performance in that they provide a more consistent means of comparing
performance to prior periods in light of the effect of exchange rate
differences, potential variations in the amount of expense for
share-based awards recognized from period to period due to changes in
the price of our common stock, the irregularity with which management
acquires intangible assets, the non-cash interest expense from accretion
of debt discount and the costs we incurred in connection with business
combinations. Management also uses non-GAAP measures as a component of
its regular internal reporting to evaluate performance of the business
and compare it to prior performance, to make operating decisions,
including internal budgeting and the calculation of incentive
compensation, and to forecast future performance. Our disclosure of
non-GAAP financial measures allows investors to evaluate the Company's
performance using information used by management.
The information furnished pursuant to Item 2.02 of this Form 8-K,
including Exhibit 99.1 referenced herein, shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act") or otherwise subject to the liabilities of
that section, nor shall it be deemed incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Exchange
Act, except as expressly set forth by specific reference in such a
filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release dated September 21, 2015
SIGNATURE
Pursuant to
the requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date:
|
September 21, 2015
|
RED HAT, INC.
|
|
|
|
|
|
|
By:
|
/s/ Frank A. Calderoni
|
|
|
Name:
|
Frank A. Calderoni
|
|
|
Title:
|
Chief Financial Officer
|
EXHIBIT INDEX
Exhibit No.
|
|
Description
|
|
|
|
99.1
|
|
Press Release dated September 21, 2015
|
Exhibit 99.1
Red
Hat Reports Second Quarter Results for Fiscal Year 2016
-
Quarterly
total revenue of $504 million, up 13% year-over-year
-
Quarterly
subscription revenue of $442 million, up 13% year-over-year
-
Quarterly
operating cash flow of $120 million, up 12% year-over-year
RALEIGH, N.C.--(BUSINESS WIRE)--September 21, 2015--Red Hat, Inc. (NYSE:
RHT), the world's leading provider of open source solutions, today
announced financial results for the second quarter of fiscal year 2016
ended August 31, 2015.
“Strong execution in Q2 contributed to total revenue results that
exceeded 21% year-over-year growth on a constant currency basis. We were
pleased with the progress of our technologies that address cloud
deployments across multiple footprints. Specifically in this quarter, we
achieved a public cloud milestone in our Certified Cloud and Service
Provider program of an annualized run-rate of $100 million.” stated Jim
Whitehurst, President and Chief Executive Officer of Red Hat. “We are
also thrilled to be the first open source company to achieve an
annualized run-rate of $2 billion in revenue this quarter. In addition,
we believe Red Hat is well-positioned for the second half of the fiscal
year as we continue to benefit from delivering innovation to our
customers.”
“We exceeded guidance across a number of financial metrics. Our growth
in revenue led to strong growth of non-GAAP operating income and
non-GAAP EPS of 13% and 15%, respectively. We also continued to invest
in our initiatives to deliver open, hybrid cloud solutions which support
our long-term growth opportunities,” stated Frank Calderoni, Executive
Vice President, Operations and Chief Financial Officer of Red Hat. “Our
year-to-date operating cash flow was $329 million, up 21% compared to
the first half of FY15. We also returned additional value to
shareholders in the form of a $70 million share repurchase in the
quarter”.
Revenue: Total revenue for the quarter was $504 million, up 13%
in U.S. dollars year-over-year, or 21% measured in constant currency.
Constant currency references in this release are as detailed in the
tables below. Subscription revenue for the quarter was $442 million, up
13% in U.S. dollars year-over-year, or 21% measured in constant currency.
Subscription Revenue Breakout: Subscription revenue in
Infrastructure-related offerings for the quarter was $363 million, an
increase of 9% in U.S. dollars year-over-year and 17% measured in
constant currency. Subscription revenue in Application
Development-related and other emerging technologies offerings for the
quarter was $79 million, an increase of 37% in U.S. dollars
year-over-year and 48% measured in constant currency.
Operating Income: GAAP operating income for the quarter was $76
million, up 19% year-over-year. After adjusting for non-cash share-based
compensation expense, amortization of intangible assets and transaction
costs related to business combinations, as detailed in the tables below,
non-GAAP operating income for the second quarter was $123 million, up
13% year-over-year. For the second quarter, GAAP operating margin was
15.2% and non-GAAP operating margin was 24.4%.
Net Income: GAAP net income for the quarter was $51 million, or
$0.28 per diluted share, compared with $47 million, or $0.25 per diluted
share, in the year-ago quarter. After adjusting for non-cash share-based
compensation expense, amortization of intangible assets, transaction
costs related to business combinations, and non-cash interest expense
from accretion of debt discount, as detailed in the tables below,
non-GAAP net income for the quarter was $88 million, or $0.47 per
diluted share, as compared to $78 million, or $0.41 per diluted share,
in the year-ago quarter. Non-GAAP diluted weighted average shares
outstanding excludes any dilution resulting from the convertible notes
because any potential dilution is expected to be offset by our
convertible note hedge transactions.
Cash: Operating cash flow was $120 million for the second
quarter, an increase of 12% on a year-over-year basis. Total cash, cash
equivalents and investments as of August 31, 2015 was $2.0 billion after
repurchasing approximately $70 million, or approximately 895 thousand
shares, of common stock in the second quarter. As of August 31, 2015,
the remaining balance in the current repurchase authorization was
approximately $430 million.
Deferred Revenue: At quarter end, the company’s total deferred
revenue balance was $1.41 billion, an increase of 13% on a
year-over-year basis. The negative impact to total deferred revenue from
changes in foreign exchange rates was $91 million year-over-year. On a
constant currency basis, total deferred revenue would have been up 20%
year-over-year as detailed in the tables below.
Outlook
Red Hat’s outlook assumes similar business conditions and foreign
exchange rates as of September 18, 2015. The full year revenue guidance
is increased to $2.034 billion to $2.044 billion. Full year non-GAAP
operating margin is targeted to 23.6%, and cash flow is increased to
$690 million to $705 million. Full year diluted non-GAAP earnings per
share guidance is in the range of $1.85-$1.87 per share, assuming a $1
million per quarter forecast for other income, a 29% annual effective
tax rate and 186 million fully diluted shares outstanding. Non-GAAP
guidance is derived by subtracting the estimated full year impact of
non-cash share-based compensation expense of approximately $160 million,
amortization of intangible assets expense of approximately $24 million
and non-cash interest expense from accretion of debt discount of
approximately $19 million.
For the third quarter, Red Hat’s outlook is for revenue of $519 million
to $523 million, non-GAAP operating margin of approximately 23.0% and
non-GAAP earnings per share of $0.47. Non-GAAP guidance is derived by
subtracting the estimated third quarter impact of non-cash share-based
compensation expense of approximately $42 million and amortization of
intangible assets of approximately $6 million, and non-cash interest
expense from accretion of debt discount of approximately $5 million.
These statements are forward-looking and actual results may differ
materially. Refer to the Forward-Looking Statements below for
information on the factors that could cause our actual results to differ
materially.
Webcast and Website Information
A live webcast of Red Hat's results will begin at 5:00 pm ET today. The
webcast, in addition to a transcript of prepared remarks and a
presentation containing financial highlights and supplemental metrics,
can be accessed by the general public at Red Hat's investor relations
website at http://investors.redhat.com. A replay of the webcast
will be available shortly after the live event has ended. Additional
information on Red Hat's reported results, including a reconciliation of
the non-GAAP adjusted results, are included in the financial tables
below.
About Red Hat, Inc.
Red Hat is the world's leading provider of open source software
solutions, using a community-powered approach to reliable and
high-performing cloud, Linux, middleware, storage and virtualization
technologies. Red Hat also offers award-winning support, training, and
consulting services. As a connective hub in a global network of
enterprises, partners, and open source communities, Red Hat helps create
relevant, innovative technologies that liberate resources for growth and
prepare customers for the future of IT. Learn more at http://www.redhat.com.
Forward-Looking Statements
Certain statements contained in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
provide current expectations of future events based on certain
assumptions and include any statement that does not directly relate to
any historical or current fact. Actual results may differ materially
from those indicated by such forward-looking statements as a result of
various important factors, including: risks related to the ability of
the Company to compete effectively; the ability to deliver and stimulate
demand for new products and technological innovations on a timely basis;
delays or reductions in information technology spending; the effects of
industry consolidation; the integration of acquisitions and the ability
to market successfully acquired technologies and products; uncertainty
and adverse results in litigation and related settlements; the inability
to adequately protect Company intellectual property and the potential
for infringement or breach of license claims of or relating to third
party intellectual property; risks related to data and information
security vulnerabilities; ineffective management of, and control over,
the Company's growth and international operations; fluctuations in
exchange rates; and changes in and a dependence on key personnel, as
well as other factors contained in our most recent Quarterly Report on
Form 10-Q (copies of which may be accessed through the Securities and
Exchange Commission's website at http://www.sec.gov), including
those found therein under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations." In addition to these factors, actual future performance,
outcomes, and results may differ materially because of more general
factors including (without limitation) general industry and market
conditions and growth rates, economic and political conditions,
governmental and public policy changes and the impact of natural
disasters such as earthquakes and floods. The forward-looking statements
included in this press release represent the Company's views as of the
date of this press release and these views could change. However, while
the Company may elect to update these forward-looking statements at some
point in the future, the Company specifically disclaims any obligation
to do so. These forward-looking statements should not be relied upon as
representing the Company's views as of any date subsequent to the date
of this press release.
Red Hat, Red Hat Enterprise Linux, the Shadowman logo, and JBoss are
trademarks of Red Hat, Inc., registered in the U.S. and other countries.
Linux is the registered trademark of Linus Torvalds in the U.S. and
other countries.
RED HAT, INC.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(In thousands - except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriptions
|
|
|
$441,526
|
|
|
$389,495
|
|
|
|
$866,319
|
|
|
$761,462
|
|
Training and services
|
|
|
62,622
|
|
|
56,404
|
|
|
|
118,830
|
|
|
108,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total subscription, training and services revenue
|
|
|
504,148
|
|
|
445,899
|
|
|
|
985,149
|
|
|
869,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriptions
|
|
|
30,996
|
|
|
27,791
|
|
|
|
60,843
|
|
|
55,551
|
|
Training and services
|
|
|
44,968
|
|
|
39,383
|
|
|
|
86,519
|
|
|
76,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of subscription, training and services revenue
|
|
|
75,964
|
|
|
67,174
|
|
|
|
147,362
|
|
|
131,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross profit
|
|
|
428,184
|
|
|
378,725
|
|
|
|
837,787
|
|
|
738,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
205,101
|
|
|
174,520
|
|
|
|
403,973
|
|
|
351,358
|
|
Research and development
|
|
|
102,488
|
|
|
95,265
|
|
|
|
199,919
|
|
|
185,204
|
|
General and administrative
|
|
|
44,125
|
|
|
44,713
|
|
|
|
86,496
|
|
|
86,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expense
|
|
|
351,714
|
|
|
314,498
|
|
|
|
690,388
|
|
|
622,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
76,470
|
|
|
64,227
|
|
|
|
147,399
|
|
|
115,190
|
|
Interest income
|
|
|
2,895
|
|
|
2,010
|
|
|
|
5,611
|
|
|
3,852
|
|
Interest expense
|
|
|
5,733
|
|
|
-
|
|
|
|
11,448
|
|
|
-
|
|
Other income (expense), net
|
|
|
(1,245)
|
|
|
(289)
|
|
|
|
(1,448)
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes
|
|
|
72,387
|
|
|
65,948
|
|
|
|
140,114
|
|
|
119,110
|
Provision for income taxes
|
|
|
20,992
|
|
|
19,125
|
|
|
|
40,633
|
|
|
34,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$51,395
|
|
|
$46,823
|
|
|
|
$99,481
|
|
|
$84,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$0.28
|
|
|
$0.25
|
|
|
|
$0.54
|
|
|
$0.45
|
|
Diluted
|
|
|
|
$0.28
|
|
|
$0.25
|
|
|
|
$0.53
|
|
|
$0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
183,179
|
|
|
188,162
|
|
|
|
183,155
|
|
|
188,767
|
|
Diluted
|
|
|
|
186,750
|
|
|
190,755
|
|
|
|
186,493
|
|
|
191,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED HAT, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
|
February 28,
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
2015 (1)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$991,607
|
|
|
|
$1,047,473
|
|
Investments in debt and equity securities
|
180,806
|
|
|
|
215,254
|
|
Accounts receivable, net
|
302,098
|
|
|
|
468,021
|
|
Deferred tax assets, net
|
99,184
|
|
|
|
86,796
|
|
Prepaid expenses
|
130,413
|
|
|
|
150,715
|
|
Other current assets
|
1,853
|
|
|
|
1,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
1,705,961
|
|
|
|
1,970,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
164,718
|
|
|
|
172,151
|
|
Goodwill
|
|
|
|
|
928,178
|
|
|
|
927,060
|
|
Identifiable intangibles, net
|
127,888
|
|
|
|
134,276
|
|
Investments in debt securities
|
823,417
|
|
|
|
546,016
|
|
Other assets, net
|
51,309
|
|
|
|
53,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$3,801,471
|
|
|
|
$3,802,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
$212,828
|
|
|
|
$237,733
|
|
Deferred revenue
|
1,047,732
|
|
|
|
1,095,115
|
|
Other current obligations
|
1,839
|
|
|
|
1,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
1,262,399
|
|
|
|
1,334,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible notes
|
724,621
|
|
|
|
715,402
|
|
Long term deferred revenue
|
365,708
|
|
|
|
387,213
|
|
Other long term obligations
|
80,693
|
|
|
|
77,340
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock
|
|
23
|
|
|
|
23
|
|
Additional paid-in capital
|
2,094,202
|
|
|
|
1,963,851
|
|
Retained earnings
|
999,854
|
|
|
|
900,373
|
|
Treasury stock, at cost
|
(1,660,580)
|
|
|
|
(1,515,288)
|
|
Accumulated other comprehensive loss
|
(65,449)
|
|
|
|
(60,621)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
1,368,050
|
|
|
|
1,288,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
$3,801,471
|
|
|
|
$3,802,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Derived from audited financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED HAT, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
August 31,
|
|
August 31,
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$51,395
|
|
|
|
$46,823
|
|
|
|
|
$99,481
|
|
|
|
$84,568
|
Adjustments to reconcile net income to net cash provided by
|
|
|
|
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
18,538
|
|
|
|
19,539
|
|
|
|
|
37,085
|
|
|
|
38,463
|
|
Share-based compensation expense
|
|
|
40,537
|
|
|
|
36,605
|
|
|
|
|
77,059
|
|
|
|
65,319
|
|
Deferred income taxes
|
|
|
(3,843)
|
|
|
|
975
|
|
|
|
|
(1,929)
|
|
|
|
3,905
|
|
Net amortization of bond premium on available-for-sale debt
securities
|
|
|
3,139
|
|
|
|
2,525
|
|
|
|
|
5,736
|
|
|
|
4,558
|
|
Accretion of debt discount and amortization of debt issuance costs
|
|
|
5,222
|
|
|
|
595
|
|
|
|
|
10,417
|
|
|
|
-
|
|
Other
|
|
|
1,078
|
|
|
|
-
|
|
|
|
|
1,908
|
|
|
|
(353)
|
Changes in operating assets and liabilities net of effects of
acquisitions:
|
|
|
|
|
|
Accounts receivable
|
|
|
(17,908)
|
|
|
|
(18,349)
|
|
|
|
|
161,479
|
|
|
|
78,231
|
|
Prepaid expenses
|
|
|
13,077
|
|
|
|
(2,391)
|
|
|
|
|
12,651
|
|
|
|
(7,580)
|
|
Accounts payable and accrued expenses
|
|
|
34,415
|
|
|
|
27,266
|
|
|
|
|
(17,932)
|
|
|
|
29,921
|
|
Deferred revenue
|
|
|
(25,017)
|
|
|
|
(6,209)
|
|
|
|
|
(56,579)
|
|
|
|
(25,957)
|
|
Other
|
|
|
(356)
|
|
|
|
358
|
|
|
|
|
(340)
|
|
|
|
1,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
120,277
|
|
|
|
107,737
|
|
|
|
|
329,036
|
|
|
|
272,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of available-for-sale debt securities
|
|
|
(196,613)
|
|
|
|
(50,567)
|
|
|
|
|
(602,824)
|
|
|
|
(319,141)
|
|
Proceeds from sales and maturities of available-for-sale debt
securities
|
|
|
170,617
|
|
|
|
140,101
|
|
|
|
|
353,200
|
|
|
|
409,532
|
|
Acquisition of businesses, net of cash acquired
|
|
|
(1,700)
|
|
|
|
(66,183)
|
|
|
|
|
(1,700)
|
|
|
|
(217,804)
|
|
Purchase of other intangible assets
|
|
|
(2,068)
|
|
|
|
(1,198)
|
|
|
|
|
(5,997)
|
|
|
|
(1,751)
|
|
Purchase of property and equipment
|
|
|
(10,277)
|
|
|
|
(14,290)
|
|
|
|
|
(20,973)
|
|
|
|
(22,884)
|
|
Other
|
|
|
(1,159)
|
|
|
|
(1,038)
|
|
|
|
|
(3,158)
|
|
|
|
2,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
(41,200)
|
|
|
|
6,825
|
|
|
|
|
(281,452)
|
|
|
|
(149,614)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess tax benefits from share-based payment arrangements
|
|
|
2,812
|
|
|
|
423
|
|
|
|
|
9,231
|
|
|
|
1,409
|
|
Proceeds from exercise of common stock options
|
|
|
480
|
|
|
|
644
|
|
|
|
|
2,589
|
|
|
|
689
|
|
Purchase of treasury stock
|
|
|
(70,079)
|
|
|
|
(80,028)
|
|
|
|
|
(70,079)
|
|
|
|
(160,061)
|
|
Payments related to net settlement of employee share-based
compensation awards
|
|
|
(7,726)
|
|
|
|
(3,831)
|
|
|
|
|
(32,937)
|
|
|
|
(17,561)
|
|
Payments on other borrowings
|
|
|
(385)
|
|
|
|
(1,635)
|
|
|
|
|
(737)
|
|
|
|
(1,990)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(74,898)
|
|
|
|
(84,427)
|
|
|
|
|
(91,933)
|
|
|
|
(177,514)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rates on cash and cash
equivalents
|
|
|
(3,494)
|
|
|
|
(8,902)
|
|
|
|
|
(11,517)
|
|
|
|
(6,657)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
685
|
|
|
|
21,233
|
|
|
|
|
(55,866)
|
|
|
|
(61,361)
|
|
Cash and cash equivalents at beginning of the period
|
|
|
990,922
|
|
|
|
564,148
|
|
|
|
|
1,047,473
|
|
|
|
646,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
$991,607
|
|
|
|
$585,381
|
|
|
|
|
$991,607
|
|
|
|
$585,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED HAT, INC.
|
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED
RESULTS
|
(Unaudited)
|
(In thousands - except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non cash share-based compensation expense included in Consolidated
Statements of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
$4,151
|
|
|
$3,425
|
|
|
|
$7,877
|
|
|
$6,543
|
|
Sales and marketing
|
|
|
|
16,782
|
|
|
13,691
|
|
|
|
32,194
|
|
|
23,929
|
|
Research and development
|
|
|
|
12,022
|
|
|
11,098
|
|
|
|
22,897
|
|
|
19,962
|
|
General and administration
|
|
|
|
7,582
|
|
|
8,391
|
|
|
|
14,091
|
|
|
14,885
|
|
Total share-based compensation expense
|
|
|
|
$40,537
|
|
|
$36,605
|
|
|
|
$77,059
|
|
|
$65,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets expense included in Consolidated
Statements of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
$2,618
|
|
|
$2,486
|
|
|
|
$5,192
|
|
|
$5,102
|
|
Sales and marketing
|
|
|
|
2,010
|
|
|
1,992
|
|
|
|
4,014
|
|
|
3,574
|
|
Research and development
|
|
|
|
292
|
|
|
959
|
|
|
|
542
|
|
|
1,917
|
|
General and administration
|
|
|
|
1,160
|
|
|
1,607
|
|
|
|
2,212
|
|
|
3,035
|
|
Total amortization of intangible assets expense
|
|
|
|
$6,080
|
|
|
$7,044
|
|
|
|
$11,960
|
|
|
$13,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash interest expense from accretion of debt discount included
in Consolidated Statements of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-cash interest expense from accretion of debt discount
|
|
|
|
$4,620
|
|
|
-
|
|
|
|
$9,219
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs related to business combinations included in
Consolidated Statements of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs related to business combinations
|
|
|
|
$51
|
|
|
$949
|
|
|
|
$51
|
|
|
2,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
|
$51,395
|
|
|
$46,823
|
|
|
|
$99,481
|
|
|
$84,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
20,992
|
|
|
19,125
|
|
|
|
40,633
|
|
|
34,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income before provision for income taxes
|
|
|
|
$72,387
|
|
|
$65,948
|
|
|
|
$140,114
|
|
|
$119,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation expense
|
|
|
|
40,537
|
|
|
36,605
|
|
|
|
77,059
|
|
|
65,319
|
Add: Amortization of intangible assets
|
|
|
|
6,080
|
|
|
7,044
|
|
|
|
11,960
|
|
|
13,628
|
Add: Non-cash interest expense from accretion of debt discount
|
|
|
|
4,620
|
|
|
-
|
|
|
|
9,219
|
|
|
-
|
Add: Transaction costs related to business combinations
|
|
|
|
51
|
|
|
949
|
|
|
|
51
|
|
|
2,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted income before provision for income taxes
|
|
|
|
$123,675
|
|
|
$110,546
|
|
|
|
$238,403
|
|
|
$200,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
35,866
|
|
|
32,058
|
|
|
|
69,137
|
|
|
58,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net income (basic and diluted)
|
|
|
|
$87,809
|
|
|
$78,488
|
|
|
|
$169,266
|
|
|
$142,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted diluted weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted weighted average shares outstanding
|
|
|
|
186,750
|
|
|
190,755
|
|
|
|
186,493
|
|
|
191,135
|
|
Dilution offset from convertible note hedge transactions
|
|
|
|
(585)
|
|
|
-
|
|
|
|
(329)
|
|
|
-
|
|
Non-GAAP diluted weighted average shares outstanding
|
|
|
|
186,165
|
|
|
190,755
|
|
|
|
186,164
|
|
|
191,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$0.48
|
|
|
$0.42
|
|
|
|
$0.92
|
|
|
$0.76
|
|
Diluted
|
|
|
|
$0.47
|
|
|
$0.41
|
|
|
|
$0.91
|
|
|
$0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED HAT, INC.
|
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED
RESULTS
|
(Unaudited)
|
(In thousands - except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP results to non-GAAP adjusted results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
August 31,
|
|
August 31,
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
$428,184
|
|
|
$378,725
|
|
|
|
$837,787
|
|
|
$738,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation expense
|
|
|
4,151
|
|
|
3,425
|
|
|
|
7,877
|
|
|
6,543
|
Add: Amortization of intangible assets
|
|
|
2,618
|
|
|
2,486
|
|
|
|
5,192
|
|
|
5,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
|
|
|
$434,953
|
|
|
$384,636
|
|
|
|
$850,856
|
|
|
$749,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross margin
|
|
|
86.3%
|
|
|
86.3%
|
|
|
|
86.4%
|
|
|
86.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
August 31,
|
|
August 31,
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
|
$351,714
|
|
|
$314,498
|
|
|
|
$690,388
|
|
|
$622,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deduct: Non-cash share-based compensation expense
|
|
|
(36,386)
|
|
|
(33,180)
|
|
|
|
(69,182)
|
|
|
(58,776)
|
Deduct: Amortization of intangible assets
|
|
|
(3,462)
|
|
|
(4,558)
|
|
|
|
(6,768)
|
|
|
(8,526)
|
Deduct: Transaction costs related to business combinations
|
|
|
(51)
|
|
|
(949)
|
|
|
|
(51)
|
|
|
(2,940)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted operating expenses
|
|
|
$311,815
|
|
|
$275,811
|
|
|
|
$614,387
|
|
|
$552,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
August 31,
|
|
August 31,
|
|
|
August 31,
|
|
|
August 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
$76,470
|
|
|
$64,227
|
|
|
|
$147,399
|
|
|
$115,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation expense
|
|
|
40,537
|
|
|
36,605
|
|
|
|
77,059
|
|
|
65,319
|
Add: Amortization of intangible assets
|
|
|
6,080
|
|
|
7,044
|
|
|
|
11,960
|
|
|
13,628
|
Add: Transaction costs related to business combinations
|
|
|
51
|
|
|
949
|
|
|
|
51
|
|
|
2,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted operating income
|
|
|
$123,138
|
|
|
$108,825
|
|
|
|
$236,469
|
|
|
$197,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted operating margin
|
|
|
24.4%
|
|
|
24.4%
|
|
|
|
24.0%
|
|
|
22.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
August 31,
|
|
August 31,
|
|
|
Year-Over-Year
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
Growth Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP subscription revenue by offering type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure-related offerings
|
|
|
$362,926
|
|
|
$331,967
|
|
|
|
9.3%
|
|
|
|
Adjustment for currency impact
|
|
|
$24,781
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP Infrastructure-related subscription revenue on a constant
currency basis
|
|
|
$387,707
|
|
|
$331,967
|
|
|
|
16.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Application development-related and other emerging technology
offerings
|
|
|
$78,600
|
|
|
$57,528
|
|
|
|
36.6%
|
|
|
|
Adjustment for currency impact
|
|
|
6,341
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP Application development-related and other emerging
technology subscription revenue on a constant currency basis
|
|
|
$84,941
|
|
|
$57,528
|
|
|
|
47.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP subscription revenue
|
|
|
441,526
|
|
|
389,495
|
|
|
|
13.4%
|
|
|
|
Adjustment for currency impact
|
|
|
31,122
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP subscription revenue on a constant currency basis
|
|
|
$472,648
|
|
|
$389,495
|
|
|
|
21.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP training and services revenue
|
|
|
$62,622
|
|
|
$56,404
|
|
|
|
11.0%
|
|
|
|
Adjustment for currency impact
|
|
|
5,688
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP training and services revenue on a constant currency basis
|
|
|
$68,310
|
|
|
$56,404
|
|
|
|
21.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP total subscription, training and services revenue
|
|
|
$504,148
|
|
|
$445,899
|
|
|
|
13.1%
|
|
|
|
Adjustment for currency impact
|
|
|
36,810
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP total subscription, training and services revenue on a
constant currency basis
|
|
|
$540,958
|
|
|
$445,899
|
|
|
|
21.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
August 31,
|
|
|
Year-Over-Year
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
Growth Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP subscription revenue by offering type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure-related offerings
|
|
|
$716,667
|
|
|
$651,018
|
|
|
|
10.1%
|
|
|
|
Adjustment for currency impact
|
|
|
$49,786
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP Infrastructure-related subscription revenue on a constant
currency basis
|
|
|
$766,453
|
|
|
$651,018
|
|
|
|
17.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Application development-related and other emerging technology
offerings
|
|
|
$149,652
|
|
|
$110,444
|
|
|
|
35.5%
|
|
|
|
Adjustment for currency impact
|
|
|
12,593
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP Application development-related and other emerging
technology subscription revenue on a constant currency basis
|
|
|
$162,245
|
|
|
$110,444
|
|
|
|
46.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP subscription revenue
|
|
|
866,319
|
|
|
761,462
|
|
|
|
13.8%
|
|
|
|
Adjustment for currency impact
|
|
|
62,379
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP subscription revenue on a constant currency basis
|
|
|
$928,698
|
|
|
$761,462
|
|
|
|
22.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP training and services revenue
|
|
|
$118,830
|
|
|
$108,191
|
|
|
|
9.8%
|
|
|
|
Adjustment for currency impact
|
|
|
10,714
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP training and services revenue on a constant currency basis
|
|
|
$129,544
|
|
|
$108,191
|
|
|
|
19.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP total subscription, training and services revenue
|
|
|
$985,149
|
|
|
$869,653
|
|
|
|
13.3%
|
|
|
|
Adjustment for currency impact
|
|
|
73,093
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP total subscription, training and services revenue on a
constant currency basis
|
|
|
$1,058,242
|
|
|
$869,653
|
|
|
|
21.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RED HAT, INC.
|
Supplemental Information
|
(Unaudited)
|
(In thousands - except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred revenue balances
|
Current Deferred Revenue
|
|
|
Long Term Deferred Revenue
|
|
|
Total Deferred Revenue
|
|
|
|
|
|
|
|
|
|
|
Balance at August 31, 2014
|
920,605
|
|
|
|
331,192
|
|
|
|
1,251,797
|
Constant currency change in deferred revenue
|
186,313
|
|
|
|
65,947
|
|
|
|
252,260
|
Impact from foreign currency translation
|
(59,186)
|
|
|
|
(31,431)
|
|
|
|
(90,617)
|
Balance at August 31, 2015
|
1,047,732
|
|
|
|
365,708
|
|
|
|
1,413,440
|
|
|
|
|
|
|
|
|
|
|
Year-over-year growth rate
|
13.8%
|
|
|
|
10.4%
|
|
|
|
12.9%
|
|
|
|
|
|
|
|
|
|
|
Year-over-year growth rate on a constant currency basis
|
20.2%
|
|
|
|
19.9%
|
|
|
|
20.2%
|
CONTACT:
Red Hat, Inc.
Media Contact:
Stephanie
Wonderlick, 571-421-8169
swonderl@redhat.com
or
Investor
Relations:
Tom McCallum, 919-754-4630
tmccallum@redhat.com
Red Hat (NYSE:RHT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Red Hat (NYSE:RHT)
Historical Stock Chart
From Apr 2023 to Apr 2024