Red Hat, Inc. (NYSE: RHT) share value fell Thursday as the open source software solutions company reported disappointing revenue. The tech company announced that Frank Calderoni, chief financial officer will step down as late as January 2017. Calderoni will take position of chief executive officer at another company.
The creator of the Linux computer operating system posted q3 revenue of $615 million. Analysts had expected $618 million in revenue. Advance payments for products and services to be delivered in the future rose to $1.7 billion at the end of the quarter. Quarterly earnings per share of 61 cents beat analyst estimates of 58 cents per share.
Although revenue was weak, CEO Jim Whitehurst remains optimistic.
“Enterprise and service provider customers continue to adopt a hybrid cloud strategy for developing, deploying and managing the life-cycle of their critical applications. Red Hat is uniquely positioned to address this need.” said Jim Whitehurst, President and Chief Executive Officer of Red Hat.
Red Hat is trading at an intraday of $68.69 (-13.91%), will the company recover from such a weak earnings report?