AT&T: Hurricanes and Earthquakes Hurt Revenue

Video subscribers are also down.

AT&T said on Wednesday that its third-quarter results took a hit from a string of hurricanes that tore into parts of the United states and earthquakes in Mexico.

The No. 2 U.S. wireless carrier said third-quarter consolidated revenue was hurt by about $ 90 million and pre-tax earnings by about $ 210 million, or 2 cents per share.

AT&T also said it lost about 90,000 U.S. video subscribers in the quarter due to intense competition in traditional pay TV markets as well as the impact of the recent hurricanes.

“Several devastating hurricanes, as well as earthquakes in Mexico, significantly impacted certain regions of our service area during the third quarter,” the company said.

“We expect further reductions in the fourth quarter as we continue to assess damage to our network and fully restore service,” it added.

However, the company reiterated its full-year forecast of mid-single digit growth in adjusted earnings and capital expenditures in the $ 22 billion range.

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The company’s shares t fell marginally in extended trading on Wednesday.

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IDG Contributor Network: Red Hat expected to rake in $2.4 billion in revenue this year

The king of Linux, Red Hat, continues its growth as a leading Linux vendor that’s betting big on the cloud. Yesterday, the company announced financial results for its second quarter of fiscal year 2017 ended August 31, 2016.

The company generated $ 600 million in revenue for the quarter, a 19 percent year-over-year increase. Red Hat is often credited with creating a business model around Linux and Open Source: a subscription based service and support model.

Subscription revenue for the quarter was $ 531 million, which accounts for 89% of total revenue. It was a 20% year-over-year increase. Based on these numbers we can safely assume that Red Hat will be generating revenues around $ 2.415 billion in this fiscal year. That makes Red Hat the most successful pure open source company to date.

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