Local Tech Wire

RALEIGH, N.C. – Red Hat topped Wall Street expectations for revenues with $220 million in its most recent quarter and edged past analysts’ expectations of an 18-cent per share profit with a 19-cent report.

The news sent red Hat shares up $1.43, or 4 percent, in after-hours trading, erasing much of the $1.68 RHT lost during the regular trading session.

Analysts had forecast revenue of $211 million. Reuters quoted analysts as expecting an 18-cent profit.

( for Red Hat upping revenue forecast and for bullish comments from its CEO.)

Red Hat (NYSE: RHT) said Wednesday after the markets closed that profits were $36.8 million after adjustments for expenses such as stock compensation and amortization.

A year ago, Red Hat reported a 20-cent per share profit. Revenues were up 20 percent.

“We continued to benefit from new project spending, expansion and cross selling of our product solutions and strong renewals in our top accounts,” said Red Hat Chief Executive Officer Jim Whitehurst in a statement.

“Our sales execution in the quarter resulted in organic revenue growth of 20 percent and the best billings growth rate in two years,” he added.

Red Hat shares closed Wednesday at $36.75, down $1.68 or 4.37 percent.

Immediately after Red Hat announced its results, shares fell a further 45 cents.

“During the quarter, we introduced our Cloud Foundations portfolio in an effort to help our customers take advantage of the benefits from cloud computing in an open and cost effective way,” Whitehurst added, noting the company’s efforts to sell products related to cloud computing and virtualization.

“Our flexible cloud stack will enable customers to run enterprise applications across physical servers, virtual platforms, private clouds and multiple public clouds,” hee said. “We are beginning to see solid interest in our cloud and virtualization initiatives as well as some early deal activity, including our first private cloud management deal over a million dollars.”

Red Hat also reported deferred revenues of $649.6 million, up 12 percent from a year ago.

The company also said it has cash, investments and cash equivalents of just over $1 billion.

“Our revenue and operating income growth continued this quarter with strong double digit gains in both, despite the foreign currency head wind,” said Red Hat Chief Financial Officer Charlie Peters. “Our performance was broad based with strong results across all geographic regions and routes to market. It is clear that our value proposition is resonating with customers.”

For the full earnings report,

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