CALIFORNIA: Open-source software solutions provider Red Hat (RHT) reported its 3Q15 results on December 17, 2015. The market reaction was positive on the results announcement. Red Hat rose by 5.3% in after-hours trading.
Negative currency effects from the EMEA (Europe, the Middle East, and Africa) and APAC (Asia and Pacific) regions knocked Red Hat’s revenues. RHT’s total revenues generated in 3Q15 stood at $523.6 million. Its Americas segment generated $342.4 million, and its EMEA and APAC segments generated $114.9 million and $66.3 million, respectively.
Revenue growth from the EMEA region showed a rise of 8.7% on a YoY (year-over-year) basis, compared to a rise of 24.8% on a constant currency basis. Likewise, the APAC region showed a rise in revenue of 11.2% on a YoY basis compared to 23.0% on a constant currency basis.
Revenue breakdown
If we break down the revenue generated from the RHT’s different segments, its Application Development segment has had the highest impact on revenue, as the rising dollar weakens foreign currencies that in turn reduce product demand outside the United States. Revenue generated from Application Development stood at $391 million in 3Q15, a rise of 17.6% compared to $332 million in 3Q14, and a rise of 36.6% YoY on a constant currency basis.
Likewise, the revenue generated from Red Hat’s Infrastructure segment stood at $373.1 million in 3Q15 compared to $332.9 million in 3Q14, a rise of 17.6% YoY on a constant currency basis.
“We delivered another strong quarter as we exceeded our guidance. We have now had four consecutive quarters of total revenue growth of 20% or higher on a year-over-year constant currency basis,” stated Frank Calderoni, executive vice president of operations and chief financial officer of Red Hat.
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