Red Hat surprised analysts this week by posting a $1.3m profit for its third quarter. Wall Street was expecting the company to break even, as it attempts to pay off a $15m restructuring bill.
Generally the Linux seller's revenue has increased by two per cent, but has still declined 26 per cent from a year ago.
Red Hat has been changing tack lately to focus on converting Unix customers to Linux, and creating software for embedded systems such as routers and consumer electronics.
So far it has had some success switching such big names as Morgan Stanley, Cisco, Nortel, Credit Suisse First Boston and IBM to its software.
Chief financial officer Tim Buckley said that the company had made some good progress in the last quarter, although he expected tougher competition from Microsoft and Unix-based companies next year.
Red Hat is certainly doing better than its rival Caldera, which seems to have discovered that its recent Tarentella buyout did not turn into the gold mine it expected. Some of the Tarentella assets turned out to be worth less than was at first thought.
Caldera made an operating loss of $91m for this quarter on revenue of only $18.9m.
New Vikendi map adds snow, snowmobiles and new aural and visual twists
Faults and bad weather ground SpaceX, Blue Origin, Arianespace and United Alliance
New regulation expected to cut greenhouse gas emissions by about 17 million metric tonnes between 2020 and 2050
Molybdenum ditelluride is a two-dimensional material that can be easily stacked into multiple layers to create a memory cell