Investopedia: Red Hat Plays A Familiar Tune

When analyzing the quarterly reports from virtualization and middleware provider Red Hat (NYSE:RHT), it is tempting to just refer back to older reports. For better and worse, not much has been changing for this software growth story. For those who liked Red Hat before, there are still ample reasons for optimism that this company has a defensible niche in a growth market (and/or could be an attractive buyout target). For those who didn't like Red Hat before, it's still a company with questionable operating leverage and rampant well-heeled competition.

Second Quarter Results - Like The Past, Only More So  
There was not much in the way of new trends or themes to come out of Red Hat's latest quarter. Revenue was up 28% from last year (and 6% from the first quarter), with subscription revenue up about 28% and billings up about 30%. Growth continues to be fueled by strong demand for products like RHEL and Jboss, and the company continues to do well in signing up large customers (30-million-dollar-plus deals this quarter) and keeping the ones they have.

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http://stocks.investopedia.com/stock-analysis/2011/Red-Hat-Plays-A-Familiar-Tune-RHT-VMW-CRM-ORCL-CSCO-IBM-GOOG0922.aspx