Red Hat's revenues grew by 45.5% to $60.8 million, compared with last year's $41.8 million. The bulk of its growth came from subscription sales: $49.2 million versus $30.6 million a year ago. Revenues from its services increased marginally by 3.1%.

Costs associated with subscription sales were $5.2 million, while costs for its services were $6.8 million. Combined, the company managed healthy gross margins of 80.3%, comparable to its profitability from a year ago. Operating expenses as a percentage of sales also remained even at 67.8%.

Solid earnings of $0.07 per share, which beat analyst consensus estimates by 40%, resulted from the company's robust revenue growth and stable profit margins. It managed to improve earnings and increase cash flow alike.

By: DocMemory
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