By Sonya Rabbitte, 16 June 2000 12:45
NEWS Linux vendor, Red Hat reported lower than expected losses for the first quarter of 2000, prompting forecasts that the company is on track to make a profit by the next fiscal year. The company reported $2.5m losses for the quarter ending 31 May, or two cents a share, compared with a loss of $3.8m or eight cents a share a year earlier. Analysts had predicted a loss of four cents a share for the period. Adjusting for non-cash expenses and acquisition costs, net loss for the quarter came to $14.1m. Revenue for the quarter stood at $16m, a 95 per cent increase on first quarter revenue last year and a 22 per cent rise on fourth quarter 1999 revenue. Meanwhile struggling software group Corel announced that it expected losses and lower than expected revenue in its second quarter results, as it changes focus integrating its word processing and graphics software with Linux. The company is expected to make between $37m to $38m in revenue, with losses between $22m and $24m. This compares with revenues of $70.5m and losses of $9.7m in the quarter a year earlier. Corel cut 320 jobs last week as part of a $40m cost cutting measure.
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