Red Hat has reported a huge leap in turnover for its third quarter ended 30 November, but posted bigger losses.
The Linux distributor reported turnover of $5.4m (£3.20m) for the quarter - an increase of $2.1m on the same quarter in 1998 and a 24 per cent increase on its second-quarter turnover of $4.4m.
However, Red Hat's net loss soared to $3.6m, compared with a net profit of $100,000 in the third quarter of 1998.
Clive Longbottom, analyst at Strategy Partners, said: "As a dot com company, turnover is far more important than profit. It is looking at the future rather than the present and concentrating on building up critical mass. But there will come a time when it has to start making a profit."
Colin Tenwick, vice-president and general manager European operations for Red Hat, said the company was "on track" and has been investing to expand its international reach, such as the recent acquisition of Cygnus (CRN, 24 November).
Red Hat also announced a two-for-one stock split to take place on 7 January.
Meanwhile, the Linux distributor has announced an alliance with Hewlett-Packard that is intended to boost sales of the vendor's Openmail system and Red Hat's own Linux distribution.
Red Hat plans to recruit several of the PC manufacturer's US Openmail resellers into its channels programme.
"Messaging, increased collaboration and email systems are a fast-growing and vital part of today's Internet-enabled business," said Tenwick.
Microsoft comes up with a new way to foist its unloved and little used Edge web browser on people
Facebook suspends Cambridge Analytica following weekend claims that it illegally harvested information from 50 million users
Insider claims Cambridge Analytica used academic app to filch Facebook data of 50 million users
Is the Samsung Galaxy S9+ worth its high price?