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Red Hat released financial results for the second quarter on Wednesday, as well as weak estimates. The free software publisher reported net earnings of $ 87 million, or 46 cents per share. A year ago, the company's net profit was $ 97 million, or 53 cents a share.
Non-GAAP earnings were 85 cents per share on sales of $ 823 million, up 14% year-over-year. Wall Street was looking for a profit of 82 cents per share with a turnover of 829 million dollars. Red Hat's shares fell by more than two percent in after-hours trading.
Breaking down revenues, Red Hat said subscription revenues were $ 722 million compared to the previous year. The majority of subscription revenue came from infrastructure-related products, while other technologies were related to application development. Red Hat said application development revenue grew 31 percent to $ 196 million.
In terms of guidance, Red Hat expects revenue of between $ 848 and $ 856 million and earnings of 87 cents per share. Analysts expect a turnover of at least $ 862 million and a profit of 92 cents per share.
"Our second quarter results were in line with our expectations and we have increased our backlog by 20% to $ 3.3 billion," said Eric Shander, Chief Financial Officer of Red Hat. "We are reaffirming our annual growth in constant currencies from 16% to 17% year-over-year, but we are adjusting our year-over-year sales guidance of approximately $ 15 million, just to keep account of the exchange rate change. "
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