Red Hat Inc (NYSE: RHT) stock slightly rose over 0.2% on March 25th, 2019 after-hours session after the company posted mixed results for the fourth quarter of FY 19. The company is being acquired by IBM Corp. in a $34 billion deal, which is projected to close in the second half of this year. The non-GAAP adjusted net income for the fourth quarter is of $214 million as compared to $168 million in the year-ago quarter. Non-GAAP operating cash flow is of approximately $27 million, was $424 million, up 17% on a year-over-year basis compared to non-GAAP operating cash flow. Total convertible note repayments were $498 million as of February 28, 2019 with a remaining principal value of $307 million. Total cash, cash equivalents and investments as of February 28, 2019 was $2.4 billion after repurchasing approximately $413 million, or approximately 0.9 million shares, of common stock in fiscal year 2019. The remaining balance in the current stock repurchase authorization as of February 28, 2019 was approximately $737.2 million.
RHT in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1.16, beating the analysts’ estimates for the adjusted earnings per share of $1.01, as per analysts polled by FactSet. The company had reported the adjusted revenue growth of 14 percent to $879 million in the fourth quarter of FY 19, missing the analysts’ estimates for revenue of $883.9 million. Subscription revenue for the quarter was $774 million, up 13% year-over-year, or 16% measured in constant currency. Subscription revenue in the fourth quarter was 88% of total revenue. Subscription revenue from Infrastructure-related offerings for the quarter was $549 million, an increase of 8% year-over-year, or 10% measured in constant currency. Subscription revenue from Application Development-related and other emerging technology offerings for the fourth quarter was $225 million, an increase of 30% year-over-year, or 34% measured in constant currency. The company has posted the non-GAAP adjusted operating income for the fourth quarter of $227 million, up 19% year-over-year. For the fourth quarter, the non-GAAP adjusted operating margin is of 25.8%
Moreover, the total backlog for FY19 was in excess of $4.1 billion, up 22% year-over-year. At the end of the fiscal year, the Company’s total deferred revenue balance was $3.0 billion, an increase of 15% year-over-year.
Due to the pending transaction with International Business Machines Corporation, Red Hat will not be hosting a conference call for its fourth quarter 2019 business results and did not be provide an outlook for its fiscal 2020.