Linux Solutions

For those who follow the development of Linux and the companies that have a heavy exposure to the operating code, you will surely have come across Red Hat. This company is one of the largest developers and distributors of Linux based systems and at the forefront of many developments over the years. So how large is Red Hat?

Red Hat is actually listed on the US NASDAQ technology based stock market with a current market value in the region of $4 billion. While the share rice is currently near the 12 months high at $21, the shares have been as high as $160 in 2000 and as low as $3 in 2001. These wild swings have often reflected the prospects and marketability of Linux, although the company does also develop other open source systems to compliment their main Linux based brands – the recently released JAVA open source code being one of the more recent additions.

The Red Hat company has seen turnover increase from $278 million in 2006 to $523 million in 2008, but unfortunately profits have not gone in the same direction. The Group reported net income for 2006 of some $79 million, only to see 2007 figures fall to just under $60 million and then rebound back to $76 million for the year ended February 2008. Even though we have seen a major slump in worldwide stock markets over the last 12 months, the fact that the Red Hat share price is nudging its 12 month high says a lot for the prospects for the company.

Many analysts are forecasting a very productive and lucrative time over the next couple of years for Red Hat, a time when Linux is knocking on the door of the mass market and Red Hat is at the front of the queue.