Red Hat shares plunged $5.52, or 21 percent, at $20.80 in morning trading.

Raleigh, North Carolina-based Red Hat reported after the market closed Tuesday that its revenue increased 52 percent in the second quarter compared with the same quarter last year.

The Linux company reported net income for the quarter of $11 million, or a nickel per share, compared with $16.7 million, or $0.09 per share, last year.

Net income excluding adjustment for taxes and stock compensation expenses was $23.7 million, or $0.11 per share. That compares with net income of $17.7 million, or $0.09 per share, last year.

Analysts had expected Red Hat to report earnings per share of a dime, according to a survey of analysts from Thomson Financial. Analysts were looking for net income of $18.8 million on sales of $97 million for the quarter.

Ahead of earnings, analysts had been looking for financial clues in the company’s JBoss acquisition, its unit shipments, and the specter that Oracle could offer support for the open-source Linux operating system (see Linux: Red Hat on Deck).

Contact the writer: SMartin@RedHerring.com

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