Red Hat, Inc. (NYSE: RHT) is an S&P 500 company in the free and open source software sector, and a major Linux distribution vendor. Founded in 1993, Red Hat has its corporate headquarters in Raleigh, North Carolina with satellite offices worldwide.
Red Hat has become associated to a large extent with its enterprise operating system Red Hat Enterprise Linux and with the acquisition of open-source enterprise middleware vendor JBoss. Red Hat provides operating-system platforms along with middleware, applications, and management products, as well as support, training, and consulting services.
Red Hat creates, maintains, and contributes to many free software projects and has also acquired several proprietary software packages and released their source code under mostly GNU GPL while holding copyright under single commercial entity and selling looser licenses. As of February 2009, Red Hat was the largest corporate contributor to the Linux kernel.
Red Hat, Inc. is a market leader in open source software systems for mainframes, servers, workstations, and embedded devices. Unlike proprietary systems that carefully guard their source codes, Red Hat and other open source software vendors make their source code freely available. The company's core product is the Red Hat Linux operating system, which is the leading Linux system for servers. More recently the company has expanded its product line to offer open source solutions in such areas as e-commerce, embedded devices, and database solutions.
Red Hat, Inc. (Red Hat), incorporated in March 1993, is engaged in providing open source software solutions to the enterprise, including its core enterprise operating system platform, Red Hat Enterprise Linux, its enterprise middleware platform, JBoss Enterprise Middleware, its virtualization solutions and other Red Hat enterprise technologies. The Company employs an open source software development and licensing model that uses the collaborative input of an international community of contributors to develop and enhance software. The collectively developed software is distributed under open source licenses, such as the GNU General Public License and GNU Lesser General Public License, permitting access to the human-readable software source code. These licenses also provide rights for licensees to use, copy, modify and distribute open source software. In December 2010, the Company acquired Makara, a developer of deployment and management solutions for applications in the cloud.
The Company offers a choice of operating systems and virtualization options for servers, work stations, mainframes and desktops that support multiple application areas, including the data center, cloud deployments, software as a service, edge-of-the-network applications, information technology infrastructure (applications, such as database, enterprise resource planning (ERP) and large Web servers), mainframe computing, corporate desktop and technical/developer workstations.
JBoss Enterprise Middleware delivers a range of middleware products for developing, integrating, deploying and managing distributed composite and Web-based applications. JBoss Enterprise Middleware is based on the Java programming language that enables the deployment of service-oriented architectures. JBoss Enterprise Middleware provides an application infrastructure for building and deploying distributed applications that are accessible via the Internet, corporate intranets, extranets, clouds and virtual private networks. Examples of applications deployed on JBoss Enterprise Middleware include hotel and airline reservations, online banking, credit card processing, securities trading, healthcare systems, customer and partner portals, retail and point-of-sale systems and telecommunications network infrastructure.
The Company’s hosted content distribution services, Red Hat Network (RHN) and JBoss Customer Support Portal (JBoss CSP), permit these Red Hat enterprise technologies to be updated and configured. Its management offerings, Red Hat Network Satellite (RHN Satellite) and JBoss Operations Network (JBoss ON), permit its customers to provision, update, monitor and manage these and other technologies in an automated fashion. Its suite of training and other professional service offerings also enable enterprise customers to leverage the performance and scalability benefits of its enterprise technologies in their environments.
Red Hat also provides other infrastructure enterprise technologies, including software development tools, higher availability clustering of systems and services, and directory services. In addition, it also offers a range of consulting, training and support services that are designed to help its customers derive additional value from Red Hat enterprise technologies. It provides Red Hat enterprise technologies under annual or multi-year subscriptions.
Red Hat sells subscriptions to Red Hat enterprise technologies directly to customers and indirectly through various channels of distribution. It sells directly to customers through its sales force and its Web store. Its indirect sales channels include distributors, systems integrators, resellers, telecom/network technology companies, cloud computing providers, hosting providers and independent software vendors (ISVs). In addition, global server and workstation hardware vendors support and pre-load Red Hat enterprise technologies on various servers and workstations and also sell their hardware together with Red Hat Enterprise Linux as part of pre-configured solutions.
The Company competes with Microsoft, Novell, Sun and Oracle, Hewlett-Packard Company, IBM, Sun and Unisys Corporation, VMware, Microsoft and Citrix Systems, Inc.
With its stock trading around $5 a share, Red Hat reported a net loss of $5.98 million on revenue of $84 million for its fiscal year ending February 28, 2001. In February the company acquired Planning Technologies, Inc., an Atlanta-based consulting firm with more than 200 professional engineers and consultants, for $47 million in stock.
In June Red Hat announced its first quarterly profit for the quarter ending May 31, with adjusted net income of $600,000 on sales of $25.6 million. In spite of its depressed stock price, Red Hat was in solid financial condition with about $390 million in cash and investments. For the future Red Hat planned to introduce open source database software and launch an open source consulting practice. Later in the year Red Hat expanded its consulting and services group with the addition of an open source consulting team that had previously worked for VA Linux Systems. The company also announced contracts with Cisco Systems and Nortel Networks, both of which installed workstations with Red Hat Linux in their engineering departments.
Later in the year Red Hat proposed an open source code, eCos, for 2.5 and third generation wireless devices. Plans called for the new source code to be developed by Red Hat in association with 3G Labs. The new operating system would be based on Red Hat's open source embedded real-time operating system, not Linux.
The company continued to expand its product offerings with the introduction of a new open source e-commerce software suite. The core of Red Hat E-Commerce was Interchange 4.8, a new version of an e-commerce platform that Red Hat acquired from open source software firm Akopia in January 2001. Also included in the package were the newest Red Hat Linux OS, Apache Web-serving software, an open source database, and a subscription service for receiving software updates.
Red Hat's stock received a boost in November 2001 when the company announced it would collaborate with IBM to deliver open source software solutions, services, and support for the entire IBM eServer product line. The new extension of Red Hat's partnership with IBM built on the company's previous support of the eServer xSeries platform. Under the new agreement, Red Hat would provide support for the IBM eServer zSeries, iSeries, and pSeries platforms. Red Hat would provide a base solution consisting of the Red Hat Linux operating system, product support services, professional services, and an upgrade offering. A wide range of service upgrades would also be offered. Following the announcement, Red Hat's stock jumped nearly 27 percent from about $6 a share to $7.62 a share.
Red Hat's expanded partnership with IBM underscored the company's leadership position in open source software for enterprise servers. The company also provided open source operating systems for workstations and embedded devices. Red Hat also supported open source developers and offered solutions for the database, e-commerce, secure Web server, and high availability server markets. For the future Red Hat was well-positioned to maintain its leadership position in open source solutions.
Principal Competitors: Caldera International, Inc.; Microsoft Corporation; SuSE Linux AG; Turbolinux Inc.; VA Linux Systems.
OVERALL
Beta: 1.20
Market Cap (Mil.): $9,157.08
Shares Outstanding (Mil.): 193.02
Annual Dividend: --
Yield (%): --
FINANCIALS
RHT Industry Sector
P/E (TTM): 86.51 31.35 20.32
EPS (TTM): 21.63 -- --
ROI: 7.60 9.99 15.89
ROE: 8.93 13.00 17.48
Statistics:
Public Company
Incorporated: 1995 as Red Hat Software, Inc.
Employees: 720
Sales: $103.4 million (2001)
Stock Exchanges: NASDAQ
Ticker Symbol: RHAT
NAIC: 511210 Software Publishers
Key Dates:
1994: Red Hat Software, Inc. is founded by Robert F. Young and Mark Ewing.
1999: Red Hat goes public as Red Hat, Inc.
2000: Red Hat expands its product offerings through acquisitions.
2001: Red Hat reports its first quarterly profit.
Name Age Since Current Position
Henry Shelton 68 2010 Chairman of the Board
James Whitehurst 43 2008 President, Chief Executive Officer, Director
Charles Peters 58 2004 Chief Financial Officer, Executive Vice President
Paul Cormier 53 2008 President - Products and Technologies
Alex Pinchev 60 2008 President, Global Sales, Services, Field Marketing
Michael Cunningham 49 2007 Executive Vice President, General Counsel, Secretary
William Kaiser 55 1998 Director
Marye Fox 63 2002 Director
W. Steve Albrecht 64 2011 Director
Narendra Gupta 62 2005 Director
Micheline Chau 57 2008 Director
Jeffrey Clarke 49 2008 Director
Donald Livingstone 67 2009 Director
Sohaib Abbasi 54 2011 Director
Address:
2600 Meridian Parkway
Durham, North Carolina 27713
U.S.A.
Red Hat has become associated to a large extent with its enterprise operating system Red Hat Enterprise Linux and with the acquisition of open-source enterprise middleware vendor JBoss. Red Hat provides operating-system platforms along with middleware, applications, and management products, as well as support, training, and consulting services.
Red Hat creates, maintains, and contributes to many free software projects and has also acquired several proprietary software packages and released their source code under mostly GNU GPL while holding copyright under single commercial entity and selling looser licenses. As of February 2009, Red Hat was the largest corporate contributor to the Linux kernel.
Red Hat, Inc. is a market leader in open source software systems for mainframes, servers, workstations, and embedded devices. Unlike proprietary systems that carefully guard their source codes, Red Hat and other open source software vendors make their source code freely available. The company's core product is the Red Hat Linux operating system, which is the leading Linux system for servers. More recently the company has expanded its product line to offer open source solutions in such areas as e-commerce, embedded devices, and database solutions.
Red Hat, Inc. (Red Hat), incorporated in March 1993, is engaged in providing open source software solutions to the enterprise, including its core enterprise operating system platform, Red Hat Enterprise Linux, its enterprise middleware platform, JBoss Enterprise Middleware, its virtualization solutions and other Red Hat enterprise technologies. The Company employs an open source software development and licensing model that uses the collaborative input of an international community of contributors to develop and enhance software. The collectively developed software is distributed under open source licenses, such as the GNU General Public License and GNU Lesser General Public License, permitting access to the human-readable software source code. These licenses also provide rights for licensees to use, copy, modify and distribute open source software. In December 2010, the Company acquired Makara, a developer of deployment and management solutions for applications in the cloud.
The Company offers a choice of operating systems and virtualization options for servers, work stations, mainframes and desktops that support multiple application areas, including the data center, cloud deployments, software as a service, edge-of-the-network applications, information technology infrastructure (applications, such as database, enterprise resource planning (ERP) and large Web servers), mainframe computing, corporate desktop and technical/developer workstations.
JBoss Enterprise Middleware delivers a range of middleware products for developing, integrating, deploying and managing distributed composite and Web-based applications. JBoss Enterprise Middleware is based on the Java programming language that enables the deployment of service-oriented architectures. JBoss Enterprise Middleware provides an application infrastructure for building and deploying distributed applications that are accessible via the Internet, corporate intranets, extranets, clouds and virtual private networks. Examples of applications deployed on JBoss Enterprise Middleware include hotel and airline reservations, online banking, credit card processing, securities trading, healthcare systems, customer and partner portals, retail and point-of-sale systems and telecommunications network infrastructure.
The Company’s hosted content distribution services, Red Hat Network (RHN) and JBoss Customer Support Portal (JBoss CSP), permit these Red Hat enterprise technologies to be updated and configured. Its management offerings, Red Hat Network Satellite (RHN Satellite) and JBoss Operations Network (JBoss ON), permit its customers to provision, update, monitor and manage these and other technologies in an automated fashion. Its suite of training and other professional service offerings also enable enterprise customers to leverage the performance and scalability benefits of its enterprise technologies in their environments.
Red Hat also provides other infrastructure enterprise technologies, including software development tools, higher availability clustering of systems and services, and directory services. In addition, it also offers a range of consulting, training and support services that are designed to help its customers derive additional value from Red Hat enterprise technologies. It provides Red Hat enterprise technologies under annual or multi-year subscriptions.
Red Hat sells subscriptions to Red Hat enterprise technologies directly to customers and indirectly through various channels of distribution. It sells directly to customers through its sales force and its Web store. Its indirect sales channels include distributors, systems integrators, resellers, telecom/network technology companies, cloud computing providers, hosting providers and independent software vendors (ISVs). In addition, global server and workstation hardware vendors support and pre-load Red Hat enterprise technologies on various servers and workstations and also sell their hardware together with Red Hat Enterprise Linux as part of pre-configured solutions.
The Company competes with Microsoft, Novell, Sun and Oracle, Hewlett-Packard Company, IBM, Sun and Unisys Corporation, VMware, Microsoft and Citrix Systems, Inc.
With its stock trading around $5 a share, Red Hat reported a net loss of $5.98 million on revenue of $84 million for its fiscal year ending February 28, 2001. In February the company acquired Planning Technologies, Inc., an Atlanta-based consulting firm with more than 200 professional engineers and consultants, for $47 million in stock.
In June Red Hat announced its first quarterly profit for the quarter ending May 31, with adjusted net income of $600,000 on sales of $25.6 million. In spite of its depressed stock price, Red Hat was in solid financial condition with about $390 million in cash and investments. For the future Red Hat planned to introduce open source database software and launch an open source consulting practice. Later in the year Red Hat expanded its consulting and services group with the addition of an open source consulting team that had previously worked for VA Linux Systems. The company also announced contracts with Cisco Systems and Nortel Networks, both of which installed workstations with Red Hat Linux in their engineering departments.
Later in the year Red Hat proposed an open source code, eCos, for 2.5 and third generation wireless devices. Plans called for the new source code to be developed by Red Hat in association with 3G Labs. The new operating system would be based on Red Hat's open source embedded real-time operating system, not Linux.
The company continued to expand its product offerings with the introduction of a new open source e-commerce software suite. The core of Red Hat E-Commerce was Interchange 4.8, a new version of an e-commerce platform that Red Hat acquired from open source software firm Akopia in January 2001. Also included in the package were the newest Red Hat Linux OS, Apache Web-serving software, an open source database, and a subscription service for receiving software updates.
Red Hat's stock received a boost in November 2001 when the company announced it would collaborate with IBM to deliver open source software solutions, services, and support for the entire IBM eServer product line. The new extension of Red Hat's partnership with IBM built on the company's previous support of the eServer xSeries platform. Under the new agreement, Red Hat would provide support for the IBM eServer zSeries, iSeries, and pSeries platforms. Red Hat would provide a base solution consisting of the Red Hat Linux operating system, product support services, professional services, and an upgrade offering. A wide range of service upgrades would also be offered. Following the announcement, Red Hat's stock jumped nearly 27 percent from about $6 a share to $7.62 a share.
Red Hat's expanded partnership with IBM underscored the company's leadership position in open source software for enterprise servers. The company also provided open source operating systems for workstations and embedded devices. Red Hat also supported open source developers and offered solutions for the database, e-commerce, secure Web server, and high availability server markets. For the future Red Hat was well-positioned to maintain its leadership position in open source solutions.
Principal Competitors: Caldera International, Inc.; Microsoft Corporation; SuSE Linux AG; Turbolinux Inc.; VA Linux Systems.
OVERALL
Beta: 1.20
Market Cap (Mil.): $9,157.08
Shares Outstanding (Mil.): 193.02
Annual Dividend: --
Yield (%): --
FINANCIALS
RHT Industry Sector
P/E (TTM): 86.51 31.35 20.32
EPS (TTM): 21.63 -- --
ROI: 7.60 9.99 15.89
ROE: 8.93 13.00 17.48
Statistics:
Public Company
Incorporated: 1995 as Red Hat Software, Inc.
Employees: 720
Sales: $103.4 million (2001)
Stock Exchanges: NASDAQ
Ticker Symbol: RHAT
NAIC: 511210 Software Publishers
Key Dates:
1994: Red Hat Software, Inc. is founded by Robert F. Young and Mark Ewing.
1999: Red Hat goes public as Red Hat, Inc.
2000: Red Hat expands its product offerings through acquisitions.
2001: Red Hat reports its first quarterly profit.
Name Age Since Current Position
Henry Shelton 68 2010 Chairman of the Board
James Whitehurst 43 2008 President, Chief Executive Officer, Director
Charles Peters 58 2004 Chief Financial Officer, Executive Vice President
Paul Cormier 53 2008 President - Products and Technologies
Alex Pinchev 60 2008 President, Global Sales, Services, Field Marketing
Michael Cunningham 49 2007 Executive Vice President, General Counsel, Secretary
William Kaiser 55 1998 Director
Marye Fox 63 2002 Director
W. Steve Albrecht 64 2011 Director
Narendra Gupta 62 2005 Director
Micheline Chau 57 2008 Director
Jeffrey Clarke 49 2008 Director
Donald Livingstone 67 2009 Director
Sohaib Abbasi 54 2011 Director
Address:
2600 Meridian Parkway
Durham, North Carolina 27713
U.S.A.